Hi sir/Madam,
I am the admin manager for a newly formed establishment of jewellery group. our establishment consist of 18 staff till now and I want to follow all legal rules and regulations in a proper manner from the beginning onwards. For this i need your help and suggestion regarding EPF and ESIC. I know the contribution rate of EPF and ESIC as 12% from both i.e., employer and employee for EPS and 1.75% and 4.25% for ESIC.
My query is regarding the no. of staff required for the eligiblity of ESIC and on what conditions. We pay gross salary of Rs. 10,000/-, 15,000/-, 20,000/- and 25,000/- and in which I have divided 25% only as basic salary and the remaining for other allowances like TA, HRA, Medical, CCA and others. Now kindly assist me that among this mentioned pay scale which employee should be included for EPF and ESIC. Kindly assist me in detailed manner...

From India, Adilabad
Harsh Kumar Mehta


(1) The employers' share of contribution under ESI Act, 1948 is @ 4.75% of total wages and not @ 4.25% as mentioned by you in above comments.

(2) Alll employees getting wages upto and including Rs. 15000/- per month will be coverable under ESI Act, 1948.

(3) Before making compliance under said Act, you will be required to obtain ESIC Code Number in respect of your factory/establishment for which you may submit form 01 to the appropriate Sub/Regional Office of ESIC. Kindly also ensure that the area where your establishment/factory is located falls in implemented area as notified u/s 1(3) of said Act and your establishment qualifies either as 'factory' or other category of establishments for which notification has been issued by the appropriate government u/s 1(5) of said Act.

(4) After obtaining of Code Number, you will be required to obtain Insurance Numbers in respect of all coverable employees after submitting Declaration Forms in respect of such employees. For this purpose, you will be required to contact the nearest ESIC Branch Office.

From India, Noida

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