Hello,
We recently hit the limit of 20 employees in our company and are in the process of enrolling for Provident Fund. I want to know is it necessary to also enrol under ESIC?
We are a software company and all employees are developers (except 1 employee who is a helper).
Thanks.

From India, undefined
Sir, coverage under ESI Act, 1948 is based on engagement of 10 or more persons. Therefore, in my opinion, your unit is coverable under said Act provided the area where the unit is located is declared as implemented area under section 1(3) of said Act. For coverage of factory it is not necessary that the said 10 or more persons must be getting wages upto present coverable limit. Once factory is covered, only the employees getting wages upto coverable limit will be covered under said Act even though there may be only one employee.
From India, Noida
Dear Abbas Ali,
I agree with the submissions made by senior member Shri Harsh Kumar Mehta. It is not clear from your mail in which state your establishment / factory is located. Moreover, in case it falls within shops and commercial establishment act, even then in few states the coverage under ESIC is on 10 eligible persons or otherwise it is 20 eligible numbers.
P K Sharma

From India, Delhi
Dear Sh. P.K.Sharma ji, after amendment in the year 2010, now there is no requirement of "10 eligible" persons. Now only requirement is 10 or more persons. Kindly see the definition of "factory" in ESI Act, 1948 (as amended).
From India, Noida
Hello,
We are in Nagpur, Maharashtra.
We are a service oriented Software Company where all the employees are Software Developers. The only exception is a Helper who is an unskilled office boy.
Out of 20 employees, 19 employees have Gross Salary more than Rs.15000. However, only a handful (less than 10) employees of Basic Salary + DA less than Rs.15000.
Please let me know.
Thanks.

From India, undefined
Hello,
We are in Nagpur, Maharashtra.
We are a service oriented Software Company where all the employees are Software Developers. The only exception is a Helper who is an unskilled office boy.
Out of 20 employees, 19 employees have Gross Salary more than Rs.15000. However, only a handful (less than 10) employees of Basic Salary + DA less than Rs.15000.
Please let me know.
Thanks.

From India, undefined
Dear Abbas Ali, I have gone through your concern, but once you start business particularly in India, you need to abide by all the prevailing laws of land. As for enrolling in ESIC, first of all you need to see if the ESIC act is applicable to your area, as per ESIC Act all the employees above 10 with the use of Power, and Employees 20 or more without use of Power, the said establishment is required to be enrolled, this includes the Directors withdrawing Remuneration. If the visiting Inspector feel that the said establishment does not fall under the ESIC act, he will exclude the establishment on assessment pre allotment of Employers' Code #, but you need to do the paper work for enrollment.
From India, New Delhi
Dear Pankaj Sibal and Shri Abbas Ali ji,
The coverage under ESIC is on 10 numbers with or without the use of power and the procedure is online now. No verification / recommendation by area inspector is now required. You fill the required information online and your employer's code will be generated at a click.
P K Sharma

From India, Delhi
Dear Abbass ali
as per the confirmation EPf calculation will be 20 or more employees and esic is also compulsory since the software company is more than 15000 salary they are not eligibility but esic is 10 or more employees
Kind Regards,
Sathyanarayanan T
Senior Advisor – HR Compliance
NI Consulting Services Private Limited
Human Resources | Business Advisory | Information Technology
Tel: +91 44 4261 1486 | Mob: +91 98418 74747
Chennai | Bangalore | Hubli | Hyderabad | Kuala Lumpur
New No.81, Old No.61 Peters Road, Royapettah, Chennai - 600 014. INDIA
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From India, Chennai
Hello Abbas Ali,
ESIC is applicable for all the companies, whatever the industry may be if their total employee strength is 10 or mor, e. Once the company reached their employee strength to 10,company should be registered under ESIC act.
But the contributions are mandatory only when they reach 20 employees.
Companies are exempted from ESIC act,only if
1. the employee strength is less than 10
2. Company located in ESIC non implemented area
In your case, ESIC registration is mandatory and contributions to be made for the employees whose Gross salary is less than or equal to 15000.
Regards,
Starlet

From India, Bengaluru

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