Suman Nayar Started The Discussion:
Hi ALL, Kindly guide me what is minimum no of employees required in any company to become eligible for PF & ESI. Thakns Suman
For factories run with power the minimum number of employees required to get covered by ESI is 10 whereas it is 20 for factories run without power and for other establishments also it is 20. However, the words "with power" and "without power" are going to be deleted from the definition of factories for the purpose of coverage and thus making it 10 for all factories.
For EPF coverage the minimum number of employees required for a STATUTORY coverage is 20.
The basic difference between these two social security enactments with respect to coverage is that for ESI the required number of employees of 10 or 20, as the case may be, should be employees whose salary do not exceed more than Rs 15000 and whereas for EPF all the employees whether they are drawing less than or more than the qualifying salary of Rs 6500 are taken into account. To make it clear, if there are 30 employees of which only nine employees get gross salary of Rs 15000 or less, then that establishment will not come under ESI Act. But at the same time, if the number of employees is 20 but all are drawing basic salary (+DA) of more than Rs 6500, then also the PF will be covered to that establishment.
Thanks all who have given their valuable information......
Kiran, I am sure about Mr. Madhu's information. But I attended one interview yesterday,the HR Manager asked the same question when i answer the same he told it's not.Only 10 employees enough for PF and less than 10 can go for ESI.
As I m new to the field, i just wanted clarify.
Thanks once again Mr.Madhu,shivkumar & Kiran.
Hey first thing i dont understand before asking us for this information why people dont try to get these ESIC & EPF details through their official websites which has created by Govt. for this purpose specially, so that every one can get the complete knowledge and rules/regulation for the same.
Dear you need to go thru the websites first where you can get every possible relative information there.
Hope you and other peoples will understand my point of view and please make the best use of their website and this place.
As u said during interview HRM told that u r replying in wrong way; may be he was making u confused and checking ur confidence, but do not panic by this what we are presenting that is as per act itself and any one can not change the provisions which u can get through departments websites as stated by Anilkumar Arora. C.Govt. has introduced the bill for applicability of act to the industries employing 10 or more employees but it is yet under consideration and not amended. Esi coverage of industry, estt. is as it is as stated by Madhu.
So, be confident and have more knowledge then u wud be able to fight in future.
While appreciate the clear defitioon of Madhu, two rules were clubbed together which has to be read separately. Would like to clarify the importance in understanding on the "coverage of factory/Estt" & "Coverage of employee"
For "Coverage of Estt/factory "all employees" (irrespective of the salary limits including directors drawing remuneration) will be taken into count. Hence the question of "salary" doesnot come into the picture to determine the coverage of estt/factory. The salary comes into picture only after coverage of establishment to determine the coverage of employee.
i.e. Even the establishments covered under ESI may have "0" employees paying the contributions due to all employees are "Exempted Employees" if the salary is above the coverage limit i.e at present which is >Rs.15000 p/m.
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