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LetterProve Exemption Limit Of ESI

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This request is for a letter of exemption from ESI for an employee of our company whose gross salary is higher than 10,000 p.m. The letter should be addressed to the client for whom the employee is working and labeled “TO WHOM SO EVER IT MAY CONCERN”. Could you please advise what should be included in the letter?

  1. Your request is not clear. Could you please explain what you mean by CLIENT? Is it a customer? Who will be receiving the letter, who will be issuing it, and for what purpose? Once I have this information, I may be able to answer your query.

  2. To Whom It May Concern, This is to certify that an individual has been employed by us from a certain date to another at a salary of Rs. 15,000/- per month and has been exempted from ESI coverage as per the guidelines of the ESI ACT (Chapter .., Sec – …). Thank you, Authorised Signatory For ……………………..

  3. This letter is to be issued by HR which will demonstrate that the employee in question, who is employed by us and is on our payroll, is working for our client. The labour inspector wishes to verify if they are eligible for ESI. Therefore, it needs to be demonstrated that they have been exempted due to their gross salary exceeding 10k. Urgent assistance is required in this matter.

  4. It is quite unusual for a Labour Inspector to request such information, as this is not within their jurisdiction. There is no specific format for such a letter as per the Act. The format suggested by Nishant is suitable, but you can also include the breakdown of all allowances paid on a monthly basis, such as basic, HRA, attendance allowance, conveyance allowance, and any other allowance. Additionally, you may include a salary slip signed by the employee for further validity.

  5. I need to make it clear in writing that he does not fall under the “ESI ambit”. This is an unusual situation and I have not encountered it before. I would appreciate a prompt response.

  6. I would like to request the Labour Inspector to provide me with the information under which section of which Act so that I can expand my understanding. Additionally, he can always examine the payslip/Salary Register for confirmation. His intentions are likely different from mine.

  7. This is to certify that the said employee has been employed with this establishment since (date). As per the work arrangement, they are presently working with (client’s name). It is also certified that they are receiving a salary of Rs. (Amount more than Rs 10000) per month excluding employer’s contribution to Provident Fund or Pension Fund or contribution payable under Employees State Insurance, any traveling allowance or value of traveling concession, any special pay, Overtime pay or gratuity payable on discharge and is not covered by Employees State Insurance by virtue of clause (b) of sub section (iii) of section 9 of the Employees State Insurance Act. Authorised Signatory It is hoped that the above information will be of assistance.

  8. Hello Madhu, I am grateful for the letter you have composed. However, it would be beneficial to include the chapter of the ESI Act that it pertains to. Thank you

  9. Hi Ditti, you can give a letter stating :- this is to certify that the person in question is employed with us from _______ till date and their current gross salary is ___________. As per Esic act 1948, employees drawing gross salary of 10000/- and above are exempted from contribution towards ESIC, hence they are exempted from the said act. Additionally, you can also attach a copy of salary sheet where their salary is mentioned along with their signature, as well as a copy of returns filed. We hope the above information is helpful. Best Regards

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