ESI Coverage - Esic [Thread 186476] - CiteHR
Soical Compliance Auditing
Advocate - Labour & Industrial Law
Working With Ngo
Payroll Services
Labour Laws And Financial Matters
Sr.exe Admin
+4 Others

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Dear Seniors,
The total strength of our Company (ITES) is 35. We have only 3 employees earning less than Rs. 10000 Gross per month. We have already registered under PF. Now are we covered under ESI or we have to register when the total employees earning less than Rs. 10000 gpm reaches 20.
Your reply is much awaited.

Dear Darry,
Currently you dont need to register under the ESIC, since the number of emplyees are less then 10.
For ESIC minimum number of employee should be 10
For PF minimum number of employee should be 20
jagdish Pathak

Thanks a lot Jagdeesh and Kumar,
Apart from these 3 employees, we have 2 employees appointed OFF roll. One is the security and the otherone is the Housekeeping lady.
I understand from your reply that we are still not covered under ESI.
Correct me if im wrong.
Thanks Darryl

Dear Darry,
it is advisable to you that whenever you outsource any employees, you should discuss with the vendor about the statutory compliances, it should be fulfil by them, otherwise it is principal employer responsibility.
Jagdish Pathak

I think to come under the umbrella of ESI Act, minimum manpower required is 20 (salary<=10000) if no manufacturing actvity is being carried out. While for factories, limit is 10 with the aid of power otherwise it is 20( without power). For BPO it should be 20 employees.
Correct me if i'm wrong

I am of the opinion that since number of total employees exceed the limit of the Act, Act is applicable to the organization. Only those will be covered who draw less than 10,000/-, including those employed by your organization as well as contract employees and casuals
ESI is also applicable to your organisation as total number of employees are 35.It does not mean that you have only 3 employees who are getting salary less than 10000/month.
As you told to us that youe organisation already covered under PF,then why should not go for ESI.
Please fullfil your responsibility by sending a request to cover 3 employee ,if the authority deny to registered your organisation then it would be safe for your organisaton for future.
Best Regards
Sajid Ansari-Delhi

Any factory/estt. will be covered under the provisions of the Act, if they are having 10 COVERABLE EMPLOYEES in case of factory and 20 COVERABLE EMPLOYEES in case of Shops/Estt., these 20 and 10 includes any immediate employers, i.e. they may not be directly under the principle employer, but they may be deputed by contractors, like Security/labour contractor/any service providers who depute their employees ..etc..

Dear Darryl,
ESI is applicable to your organisation, the act clearly say its according to number of employees engaged but not according to the employees covered. It is my advise to u to go for ESI coverage and submit the returns accordingly.
Rajeshkumar Dogra

I agree with the members saying that your organization is coverable, and you will have to register under ESIC because you are employing more than 20 workmen and you'll have to pay ESI whenever you are appointing for salary of less than 10K. But if you increase the salary of these 3 employees above ten thousand, then also you are not exempted, the only benefit is you don't have to pay ESI contribution for them.
Offroll employees are not allowed, because I have seen the ESI officials forcing some companies to pay ESI even when they expend on maintenance , carpentry, etc. which involves labour. Also incentives given to employees are not left under ESI. So its better to be aware of the problems to face at the time of inspection.

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™