Where in India Is ESIC Not Applicable? Seeking a List of Areas and Cities

Dear sir,

Please provide me with a list of areas/cities where ESIC is not applicable.

Vikash Doshi

Dear Mr. Doshi,

ESI is covered in all states except in the states of Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh, and Mizoram. Additionally, employees earning less than Rs. 40 are exempted from contributing their share for ESI.

I work in a Chennai-based infrastructure company as an HR Executive in Jammu. Our salaries, after deducting PF, come from the Chennai office. We have heard that J&K has different rules for EPF and ESI. If we have to give wages to local labor, what should we do for their EPF and ESI? Our work in Jammu is for a 2-year contract only. So, can you suggest if there is a need for us and labor to open these accounts separately or not? If yes, what should we do now?

Dear Vikas Doshi, ESI is a comprehensive code covering a large area of India. However, when it comes to medical facilities, providing the same in many areas is challenging. As a result, the corporation has divided areas into two parts: IMPLEMENTED AND NON-IMPLEMENTED AREAS.

Factories and establishments located in implemented areas are covered. Conversely, factories and establishments in non-implemented areas are not covered. Therefore, you must obtain the list of areas from the corporation directly.

Regards, KIRAN KALE.

Can anybody explain the perfect reason for which the ESI is not applicable to states like Nagaland, Manipur, Tripura, Arunachal Pradesh, and Mizoram? Hoping for a positive response...

Thanks,
Rama

I think these states are outside of municipal limits and very far away from the ESI-covered region. That's why these states are not applicable for ESI. The employer must provide a WC policy to their employees.