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Hi All,

We are a 100+ employee company; we don't have any employees whose salaries are less than INR 15,000 per month. We have a carpenter and an electrician who come to fix any issues on a call basis. Apart from these two resources, we have a tea vendor who is stationed in our office for the whole day in the cafeteria.

Under the above conditions, is it mandatory to register our company with ESIC?

Regards,
C. J. Patel
Email: cjpatel@hotmail.com

From India, Bangalore
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Dear Patel ji,

The ESI is mandatory as per the Act where the act covers. If your organization is in the vicinity of the ESI area, it automatically covers the ESI, but if your strength of employees is 20 and their salaries or wages are below Rs. 15,000/-, you have to approach the local office and explain about your organization and the salary particulars of employees. The local manager will then make a decision on your query or may send the ESI enforcement officer to inspect the records before making a decision.

Regards,
PBS KUMAR

From India, Kakinada
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Mr. CJ Patel,

The ESI is mandatory as per the Act where the Act covers. You do not have any peon, sweeper, or gate man in your company. If you have any sweeper or peon, and they are also earning more than ₹15,000 per month, I cannot understand. In my view, please register your company under the ESIC Act.

Thank you,
Pawan Bhatia
09812585353

From India, Bahadurgarh
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Hi Pawan, We don’t have any peon or gate man as these people are outsourced from an agency and they are covered by their parent company. Regards, C J Patel
From India, Bangalore
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I wish to make a correction here. Your local office of ESI is only useful for filing returns, paying premiums, etc. For registration, you have to approach the ESIC head office in Delhi. After your registration is done, you may never need to approach the Delhi office.
From India, Jamshedpur
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Dear Seniors,

As per the last update from Mr. Patel, "We don't have any peon or gate man as these people are outsourced from an agency and they are covered by their parent company" -- in this case, is it required to get covered under ESIC. This clarification will be of great help to us.

Regards

From India, Madras
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From 01-10-2010, the Act has been amended, and ESIC is applicable to all establishments where 20 or more employees are employed or were employed during the preceding 12 months. All such establishments are required to register with ESIC. To register, one needs to approach the Regional/Zonal/Sub-Regional office of ESIC in the respective area. Establishments shall be registered, but only employees whose gross wages are less than or up to Rs. 15,000 per month will be covered under ESI.

Moving forward, state governments have been instructed to notify the base limit of employees as 10 for the coverage of an establishment. This change has already been notified in Delhi from 01-04-2011.

Harvinder

From India, Delhi
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This is a matter of statutory compliance since ESIC is mandatory as per the ESIC Act 1948 for every organization that is engaged in trade or any commercial activities and has an employee strength of 20 or more.

At the very least, a company should get registered even if the employees are being paid more than gross 15K per month. This registration could be beneficial for employees in terms of medical sickness or major illness if it arises in the future for those employees who would be covered under the ESIC scheme by the Government of India.

Ashok

From India, Delhi
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Dear CJ Patel,

As far as I know, if any of the employees in your company are paid less than the laid-down salary, you should be registered with the ESIC. However, if such employees are outsourced to another company/contractor, that company/contractor becomes the employer, and you become the 'Principal Employer.' Therefore, your liability remains, and you are responsible for ensuring that the employer has covered the said employees under ESIC.

Good luck.

Colonel Gahlot


From India, Delhi
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Dear team, I agree with the views expressed by mr Ashok dass. The PE has to get ESI code eventhough doesnt have emp drawing less than 15000 rs and need to file nil returns. Regards/SVS RAO
From India
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Sorry SVS, But the Principal Employer does not have to get the ESI code. It is the responsibility of the employer, ie the contactor. Colonel Gahlot 'TRURECRUIT'
From India, Delhi
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Dear CJP,

You need to ensure that the contractor to whom you have outsourced the work is registered. Only pass his monthly bills after he submits proof of:
1. His registration
2. Having deposited the 'Challans' pertaining to the affected employees.
3. Keep a record of compliance as you are equally liable as the contractor.

Good luck.

Aye,
Colonel Gahlot


From India, Delhi
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Contact the ESIC Social Security Officer for the jurisdiction of your area. Provide them with the balance sheet from the year your company started, and the officer will confirm whether your company will fall under the ESIC Act or not.
From India, Bangalore
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What is the need of ESI in case company is associated with other general insurance( Oriental, ICICI Lombard Etc.)
From India, Brahmapur
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