Pls. go through the below amendment of this act.
Yes, as per the Employee State Insurance Corporation Act, it's mandatory for every employer to contribute towards ESIC, where the employee's gross salary is less than Rs. 15,000. The limit of salary was Rs. 7,500 until September 30th, 2006, and from October 1st, 2006, it was increased to Rs. 10,000. Now it is increased to Rs. 15,000. Probably, it is expected that this limit shall increase to Rs. 20,000 in the coming years.
The Government of India has amended the Employees' State Insurance (Central) Rules, 1950, and the same is called 'Employees' State Insurance (Central) (First Amendment) Rules, 2006.
We are doing the right thing, and it is statutory also.
In other words, all those employees who receive a monthly salary of Rs. 15,000 or below will be covered under ESI, and the employer will have to contribute 4.75% of their salary.
It is not optional at the instance of the employee.
As far as ESI is concerned, you need a total of 20 employees drawing less than Rs. 15,000 Gross Salary. It means if you have a minimum of 20 employees who are drawing Rs. 15,000 or below, then it's mandatory for every employer.
Regards,
Nirav Shah
[Phone Number Removed For Privacy Reasons]
Ahmedabad