Is ESIC Deduction Necessary for Employees in Non-Implemented Areas? Seeking Clarity!

Dear All Seniors, I need your help to come out of the confusion! I have heard that if employees are working in areas where ESIC is not applicable (NON-IMPLEMENTED AREAS), we do not need to deduct ESIC contribution amounts from their wages. Is that correct?

Regards,

Employees working in the branch office situated in a non-implemented area need not be covered, even though the Head Office is covered. The same applies to employees who are supposed to be on tour for not less than seven months in a year.

Regards,
Madhu.T.K

Actually, wherever it is not implemented, the area under ESIC need not be covered. Kindly visit the concerned ESIC Regional Office and seek suitable advice in writing, which will be recorded and also safe for you.

Regards,
Jeeva K.

Employee State Insurance (ESI) Applicability

No Employee State Insurance (ESI) will be applicable and deductible in case of non-implemented areas. However, to be on the safer side, it is necessary to take out a workmen's compensation policy.

No question of deduction of ESIC if the factory/establishment is located in a Non-Implemented area, even if your parent/H.O is covered under the purview of ESIC.

Dear All Seniors,

Thanks a lot for the prompt response! Should we understand that if ESI Dispensaries or Hospitals are not in a particular location, it comes under "NON-IMPLEMENTED AREAS"? Here, the contributor is not able to benefit from ESIC.

Regards,

To confirm, you need to check with your nearest SRO office if the specific area has been implemented or not.