Hi Shiwani, I am not sure about HR laws in Punjab/Chandigarh, but as per HR laws in general, yes, it is mandatory to deduct ESI if the employee is drawing less than ₹15,000 per month.
An employee will not contribute his share of ESI if he is earning less than ₹25 per day. However, in the ESI portal, it does not calculate if wages are less than ₹70 per day.
ESI is mandatory for employees of an organization situated in an ESI notified area. First, check with neighboring organizations or the local ESI office for the areas where ESI is implemented. If the organization is coverable, then cover all employees drawing less than ₹15,000 per month.
Regards,
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