Sr. Manager-hr &ir
Private Consultant On Labour Laws
Hr , Personnel & Admin
Hr- Executive
+2 Others

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Dear Seniors,
As i know that for ESI eligibility there must be at least 20 employee in an establishment and ceiling is 15000.
But let me know that if there are only 20 employee in an establishment out of which 5 employees are getting more than 15000. then will that establishment be cover under ESIC act
with regards

From United States, Ashburn
Hi , The ESI eligibility is atleast 10 employees Not 20 employees . Regards Rajeev Dixit
From India, Bangalore
Hi Paras
Any company, where 20 or more employees (who is drawing Rs. 15,000/- or less) are employed without power or with power 10 or more employees are working are covered under the provisions of ESI Act 1948. Your company is also coverable under the provisions of ESI Act 1948,

From India, New Delhi
Dear Sir thank u for your suggestion.....kindly let me know what is special allowance.as i know that ESI contribution is payable on Basic+special allowance.so what kind of allowance are included under special allowance
paras thakur...

From United States, Ashburn
Dear Mr. Paras, ESIC deduct on Gross salary till 14999, not on Basic+ Special allowance. Warm Regards Bhaevsh kalal
From India, Ahmedabad
Dear Members,
The definition of the 'Factory' under Section 2(12) of the ESI Act,1948 has been amended by an Act 18 of 2010 where the words 'with or without the aid of power' has been removed from the definition. The definition has been simplified to include any premises where Ten or more persons are employed'........(unquote)
As regards the the determination of coverage is concerned, all the employees irrespective of the quantum of salary shall be included,but persons drawing over Rs.15000/- shall not be covered for the purpose of benefits under the Act.
Based on the judgments of various courts, the ESI Corporation has clarified that ESI contribution shall be payable on all the remunerations received by the Insured Person Viz. Basic Pay,D.A, H.R.A.,C.C.A,O.T, Night Shift allowance etc.
BS Kalsi
Contributing Member

From India, Mumbai
Dear All,
Mr Kalsi given good feed back to all , it is also right information
I want to add some thing ,
ESI contribution shall be payable on gross salary except washing allowance,
and the payment which is paid quarterly is also exemption from ESI contribution
We will pay ESI on OT payment but it not including as wage/salary
V K Rao

From India, Guntur
An establishment is having 15 employees drawing 15000/- and above salaries. 8 employees drawing 6000/- and below salaries. Could you please tell me this establishment covered under pf act ?

From India, Hyderabad
Dear Sir
those establishment are eligible for PF which must employed 20or more employee. if some employee are getting below 6500 so the contribution will be as per their basic+DA. and those who are getting more than 6500 so it will be calculated on the basis of 6500.i mean ceiling is 6500.
paras thakur

From United States, Ashburn
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