Clarification on ESI and EPF Coverage
Your information about the automatic coverage of ESI in establishments covered by EPF is incorrect. If your area comes under ESI, a separate notification will be issued by the ESI Corporation, and only then will your establishment become covered.
Your confusion might have arisen from a notification issued by the Ministry of Labour introducing a 'combined challan' for the remittance of EPF and ESI. As per the new system, a new challan that shows details of both ESI and EPF is to be used for remittance of ESI and EPF. This does not mean that both ESI and EPF should be paid at the same time to make the remittance. A new notification clarifying the same was issued on 10th May, stating that the employer can use it separately for ESI and EPF to avoid confusion regarding the payment dates (EPF is to be paid on or before the 15th, whereas ESI can be paid until the 20th).
Regards,
Madhu.T.K