The Government of Karnataka (“Appropriate Government”), may grant or renew exemption under section 87 of the ESI Act in respect of a Factory/Establishment or class of factories or establishments in any specified area from the operation of the Act for a period not exceeding one year at a time.
Exemption under Section 90 can be granted to a Factory/Establishment belonging to any local authority such as municipality/Corporation, etc. if employees in any such factory/Establishment are otherwise in receipt of benefits substantially similar or superior to the benefits provided under the Act.
Exemption Under section 88 of the Act is granted by the Government of Karnataka to employees, or class of employees, who remain away from their Hqrs. for more than 7 months in a year, and those employees who are posted in non-implemented areas.
(a) In respect of IPs whose average is less than Rs.137/- per month, the employees exempted from payment of contribution only the employers share of 4.75% needs to be remitted
(b) In respect of persons with disabilities as defined in Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 or under National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability Act, 1999, since employee is exempted from the payment of contribution for the first 3 years