Saswatabanerjee
Partner - Risk Management
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Sumitk.saxena
Service/manager-hr
Rkn61
Hr Manager
Sibabrata.majumdar
Management Consultants Legal & Hr
Manojsingh.knp
Hr & Administration
Pulipaka1967
Asst Manager - Hr
+9 Others

Dear All,
If there is firm in which 25 employee are working out of which 16 have gross salary less 15000/- and remaining have more than 20000/- so is ESIC applicable to that firm. Please suggest.
Thanks
14th March 2014 From India, Pune
Yes ESIC is applicable in your case, since the count of employees has crossed 20, even though out of 25 employees 9 employees are out of range of ESIC salary bracket. Hope this clarifies your query
14th March 2014 From India, Ahmadabad
In addition to Saji i also quote that ESIC is applicable under ur case as because 16 employees were having salary less than Rs. 15000/-, and for coverage only 10 employees were required.
Thanks & Regards,
From,
Sumit Kumar Saxena
14th March 2014 From India, Ghaziabad
For of implementation of ESI Act 20 employees working is enough. The salary criteria does not arise.
ESI coverage is belong to the salary range of Rs.15000 and below. As the total employees are above 25, the ESI is applicable to you. You have to extend the ESI facility to the persons drawing Rs.15000 and below even though the number of such persons is below 20.
D.Gurumurthy
15th March 2014 From India, Hyderabad
Dear Mahesh,
Refer to your query, pl note the follwing.
1.you have not mentioned the firm under which category it follows.
2. It is applicable to Factories/Industries where 10 or more people working with power, 20 or more people working with out power i.e.applicable to Shops & Establishments, Private Educational Institutions& Dispensaries working on any day of preceding 12 months whose salaries/wages are below Rs.15,000/- per month.
Thanks & Regards,
V R RAO PULIPAKA
15th March 2014 From India, Hyderabad
Yes, ESIC is applicable this case .because 16 employees were having salary less than Rs. 15000/-, and for coverage only 20 employees were required. Nila Maharana 9920840453
15th March 2014 From India, Mumbai
Dear, To know about above ESIC problem or more about ESIC. Kindly visit NATIONAL ACADEMY OF INDIAN PAYROLL or call 08080226688
15th March 2014 From India
Dear All,
Thanks for the answers, but there are some HR persons whose opinion is for applicability of ESIC all twenty members should have gross salary less than 15000/- is it 100% true or not. In act also it is not clarified that applicability is related to gross salary criteria. If anybody of you have any supporting document regarding this so requesting you to please share it.
Thanks
15th March 2014 From India, Pune
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15th March 2014 From India, Pune
Sir(s),

With due regards to all members who contributed in this thread as above, I may humbly submit that the position of coverage under ESI Act,1948 as mentioned appears to be not clear. With due regards to all, I may sum-up the position as follows:-

1. Under said Act, the coverage is of two type of establishments namely-factories and establishments (some establishments as mentioned in the notifications). While coverage of factories is as per provisions of Section 1(3) of said Act, the coverage of establishments is under section 1(5) of the same.

2. After amendments in the said Act in the year 2010, in order to establish the coverage of a factory under said Act, the requirement is only of employment of 10 or more persons. The use of power for manufacturing process as well as minimum coverage of 10 or more persons (i.e. getting wages within wage ceiling) is no more required. If in any factory 10 persons are working and out of which only one person is getting wages within coverage limit ( presently upto and including Rs. 15000/), even then the factory is definitely coverable under said Act and principal employer is required to make compliance even for one person.

3. So far as coverage of establishments is concerned, the same is done after notification by the appropriate government and the State Govt. in respect of establishments other than Central Govt. establishments is the appropriate Govt. So far as I understand, a majority of State Governments ( except Maharashtra etc.) have now issued fresh notifications under said section bringing the coverage of specified establishments at par with the coverage of factories as under section 1(3) above.

4. However, in respect of areas of Pune or other implemented areas of Maharashtra and in respect of some other States, the position may be different because such State Govt. have not issued fresh notification under section 1(5) on the same pattern as per provisions of section 1(3). The position as to which of the State Govt. has issued fresh notifications after amendments in ESI Act, 1948 can be obtained from the respective Regional Offices of the ESIC. For example, the State Govt. of Gujarat has issued notification dated 03/01/2012 and Government of Anddhra Pradesh has issued such revised notification dated 21/04/2011.

5. Therefore, in my opinion, except some States like Maharashtra etc., such shops, hotels, restaurants etc. (which qualifies as specified establishments) which employ 10 or more persons regardless as to how many of them are getting wages below coverage limit as mentioned above are coverable under said Act. In such States, where fresh notifications have not been issued under section 1(5), the coverage of specified establishments will be as per notifications earlier issued by said Govts.

I will suggest to all members having interest on coverage under ESI Act, 1948 particularly officials working in HR sections of employers to kindly see the amended provisions of said Act, particularly the definition of factory under section 2(22) of said Act and also to ascertain the exact position of notification of State Govt, within their jurisdiction, if any, issued under section 1(5) of said Act before forming any opinion on the same. The present position in respect of areas like Pune situated in Maharashtra, can also be locally confirmed before any opinion is formed regarding coverage or otherwise of such units.
15th March 2014 From India, Noida
Sir(s), The definition of "factory" is under section 2(12) of ESI Act. I have inadvertently mentioned the same as u/s 2(22) in my above remarks. Kindly read the same accordingly.
16th March 2014 From India, Noida
Dear All,
Please note that by virtue of ESI notification, an establishment if employs 10 or more employees and even all of them are drawing a salary/wages exceeding Rs.15,000/ per month , the said establishment will be required under ESI Act to obtain ESI Registration.
So far as your establishment is concerned, you have to apply for registration under the said Act.
The above clarification will meet your query.
Regards,
Sibabrata Majumdar
Management Consultant Legal & HR
Kolkata, Mb:9830023706
16th March 2014 From India, Calcutta
Dear Senior hello, needed yours kind suggestion,please help
After completion of my graduation from GGSIPU Delhi, I went to join my family business of pharmaceuticals distribution & Marketing.
I was involved there for 3 years and used to manage sales of a franchise through a small team of MRs (i used to work as a manager sales )
After that i joined NIT for pursuing MBA(hrm). I am about to finish my degree & now question arises.
*will i be treated as a fresher or an experienced candidate in the job market
* If considered experienced, how to present that experience (ours is a firm have licence,tin,vat & CST but not registered as a company,neither do i drew a salary officially )
* How much relevance does it has on my carrier as a HR professional.
Thank you very much for help
Regards
Manish
17th March 2014 From India
Please explain to us why you are referring to this website ?
It has not thing on ESIC
Why are you directing the readers to that ?
I hope you are aware that spamming is against the rules of this forum

17th March 2014 From India, Mumbai
Dear all,
As per relevantprovisions under ESI Act, if an establishment employs 20 or more people, then it has to bae registered
under ESI Act. No matter, if some staff are getting more than ESI limit.
Hence, the company needs to submit particulars of all employees to ESIC and get a registration number under
ESI Act and make contributions to ESI, as stipulated under the Act.
Thanks & regards
R K Nair
18th March 2014 From India, Aizawl
Hello,
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons,
But Here In your Case The Employees Directly Employed In Your Factory,
Totally 25 Workers Are there So It Is Applicable In Your Case.
Thanks & Regards
S.Mohammad Irfan
19th March 2014 From India, Mumbai
For PF and ESIC :

For IT or any Company : PF if 20 + employees are on roll ( Whether they are permanent employees + trainees who are on stipend or trainees who are for projects not getting paid by company)

For IT Company ESIC : if 10 + employees are on roll ( Whether they are permanent employees + trainees who are on stipend or trainees who are for projects not getting paid by company)

For Manufacturing company : If ESIC : 20+ employees are on roll ( Whether they are permanent employees + trainees who are on stipend or trainees who are for projects not getting paid by company)

Gratuity : If 10+ employees are on roll ( Whether they are permanent employees + trainees who are on stipend or trainees who are for projects not getting paid by company)

PF Form Details

Form 19 for PF withdrawn and

10C for PS withdrawn

Form 13R for Transfer for PF Account from past employer to current.

Form 5 for Missing details

Form 5 Statement -1 for International Worker ( every month before 15th day of the month should reached to RPFO

Form 9 to update details/ or change or correction in Annex 2 ( Yet Annex 3 is yet to come )
20th March 2014 From India, Pune
APPLICABILITY
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.
Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.
The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010).
20th March 2014 From India, Shimla
Dear All,
This question is for shop and other establishment.
You all are true with number of employee required for the coverage, but please clarify the criteria of gross salary limit with number of employee and their current earning gross salary.
Also I requesting to Mr. Manoj that can you provide the name of that 14 sates who have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons.
20th March 2014 From India, Pune
ESI coverage for salary limit, currently is Rs.15000/-. However, there were some newspaper reports the salary limit for
ESI coverage is enhanced to Rs.25000/-. But no such amendment, to my knowledge, is effected.
Thanks
R K Nair
21st March 2014 From India, Aizawl
ESI is applicable to that place and there working pople, if people are more that 10, it becames applicable from that date and it is tobe paid as per ESI rules.
24th March 2014 From India, Mumbai
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