Is the ESI Act Applicable to Construction Sites with Contractors and Low-Salary Employees?

We are engaged in the construction of buildings, and we have 10 employees drawing a salary of less than 15,000/-. Additionally, we have two contractors deployed at our construction sites. Could you kindly clarify whether the ESI Act is applicable at the construction sites and if we are bound to register ourselves under the ESI Act?

Regards,
Guddu

Employees who are employed at construction sites are not covered by ESI. Therefore, your establishment will not be covered by ESI.

Regards,
Madhu.T.K

As far as the registration of employees in the construction field is concerned, workers related to construction, especially masons and laborers, are not covered under ESI. However, the construction office, which has 20 clerical staff, supervisors, etc., is covered under the provisions of the act.

Dear all,

Please provide me with notification regarding the exemption of the ESI Act in construction projects.

Please clarify whether our contractors, having more than 25 laborers, have to register under ESI or if they are also exempted.

However, the construction office, which has 20 clerical staff, supervisors, etc., is covered under the provisions of the act. In this, wages are taken into consideration rather than the strength of employees.

Regards,
Guddu

ESI Coverage for Units/Establishments

Whenever ESI considers the coverage of a unit, establishment, or factory, it will assess the coverable employees. This includes evaluating both wages and staff strength. Specifically, if a unit has 10 or more coverable employees earning less than or equal to ₹15,000, then that unit is coverable under the provisions of the Act.

ESI Coverage for Construction Workers

Now, construction workers who are engaged at sites are also covered by ESI Schemes. Similarly, for the coverage of establishments, the total number of employees will be taken into account. The earlier provision of considering only those whose salary comes under the coverable limit stands withdrawn. Therefore, if you employ 10/20 employees, your establishment shall become covered even if none of the employees is earning less than Rs. 15,000.

Regards,
Madhu.T.K