Is It Mandatory To Deduct ESI Even ESI Hospital Is Not Available In That District? - CiteHR
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Hr Generalist

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Dear Genius,
My firm is setup in Tiruvannamalai and here we don't have ESI hospital in Tiruvannamalai district, Tamil Nadu.
Please suggest me whether ESI deduction is mandatory even though we don't have ESI hospital.
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No ESI does not depend on ESI hospitals, but there are areas that are designated by the department. So go through the area sheet. You can also call the state ESI office and take info. They are co-operative.
1. Sir, ESIC has its own norms regarding setting up of Hospitals under ESI Act, 1948. Though the scheme is notified in areas having number of employees say 1000 or more, and ESI dispensary is set up, but hospitals in such areas is not set up separately. In such areas, ESIC either has make indoor medical treatment arrangements with the State Govt. Hospitals or at some other places. It will be more better if you may contact the office of Regional Director or State Medical Commissioner of ESIC to know the particulars and address of hospital where indoor medical arrangements for workers of your area have been made.
2. If the area where your factory/unit is located is implemented area, compliance under said Act is required to be made compulsorily even though the indoor medical arrangements have been made at some other place or through State Govt/private hospitals.
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