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ttarun210
Sir,
This is to inform you that i am an owner of a company with 50 employees working in it. But there are only 4 employees whose Total Salary is less than 15000.
So is it necessary for me to register my company under ESIC.
If it is necessary then plz tell me the steps to register my Co. in ESIC with 4 members. As i have heard that minimum of 10 employees are required to register the Co. under ESI Online.
An Early Reply will be highly appreciated.

From India, Gurgaon
jeevarathnam
633

Total number of employees should be 10 and if any 1 employee is getting paid less than 15000 then its mandatory to register under ESI. I hope you have PF & PT registrations
From India, Bangalore
lalvallabhm
18

Dear Mr. Tarun,
ESIC registration is mandatory if 10 or more employee are employed irrespective of their salary .
You can visit ESIC website and register your company under ESIC. Yes it is true that you will be asked to provide declaration of 10 employees during the registration process you can include the name of employee who are earning salary more that 15000/- but you are not liable to pay contribution for them .
For more clarification you can contact me on 9722965801 or email me on

From India, Mumbai
saswatabanerjee
2383

I would disagree with the above posts.
The ESIC applicability is for companies with 20 or more workers (some states have reduced the number to 10)
However, definition of worker is someone who has a salary of less than ₹15000
So unless you have at least 10 people with Salary below that lever, ESIC will not apply to you.
This was confirmed by the ESIC inspector at one of our clients place a year ago.

From India, Mumbai
jeevarathnam
633

Dear Mr. Banerjee
Thanks for your advice
I am sure as even if one employee is earning less than 15000/- then it is applicable.
For example we are the victim for that. As a HR person I advised our management for ESIC enrollment but our management didn't consider for enrollment. Our total employee strength is about 23 out of that at any calendar month there was not even 5 employees who were drawing less than 15000/- Normally salaries will be above 17000/- except few freshers for 3-4 months.
Inspector slapped us with interest & penalty for last 3 years

From India, Bangalore
saswatabanerjee
2383

And I have a letter in writing from the ESIC inspector confirming that we are not covered because less than 20 employees have salary below ₹15,000.
I think the local guys take any interpretation they like.
The cost of fighting it is u fortunately very high.
One option is to approach the ESIC office for confirmation,......

From India, Mumbai
jeevarathnam
633

Everything done. I met even the commissioner office and its been confirmed the same. Initial stage it was company should have minimum of 10 employees who are covered but as per the amendment on June 2010 it is clearly mentioned the total employee strength and not the employees are who are under 15000/-
For your reference I am enclosing the copy of the amendment also

From India, Bangalore
Attached Files (Download Requires Membership)
File Type: pdf ESI COVERAGE ON 1O EMPLOYEE01042011.pdf (1.94 MB, 405 views)

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