Understanding ESI Coverage: Does Employee Salary Affect Registration Requirements?

krishnang44
I would like to know whether the minimum limit of 10/20 refers to employees drawing up to Rs. 10,000. For example, if there are 60 employees all over India (25 in one location, 15 each in 2 locations, and 5 in the 4th location) but only two employees in each location are drawing a salary up to Rs. 10,000 and the rest are drawing a salary above Rs. 10,000, whether:

1. ESI is applicable since only 8 employees are drawing remuneration up to Rs. 10,000.
2. If ESI is applicable, whether each of the four locations which have 2 employees drawing up to Rs. 10,000 needs to register in respective states or only in the location where there are 25 employees need to register under ESI.
malikjs
Dear,

If overall eligible employees in all locations are more than 20, then only you need to register under this act. So, your total eligible employees are only 8; therefore, you are not required to take the code.
bijay_oops
As per my opinion, now after the enhancement of the ESI limit as per the Government of India Circular dated 20 April 2010, you are now covered under the ESI Act. The ESI limit has been raised via the said circular to Rs. 15,000 per month with effect from 01 May 2010. So now you have more than 20 employees eligible for ESI cover. Sorry for my late response by 8 months. Please wait for the visit of the ESI enforcement officer or volunteer to register under the Act as convenient to you.
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