Updates on ESI Act Employee Coverage and Notification - Insights and Clarifications

Dear All,

ESI Act is now applicable to the employment of 10 employees or more based on headcount. Establishments/shops, etc., with an employment strength of 10 or more employees drawing any salary (less than Rs. 15,000/- per month or more than Rs. 15,000/- per month) are now covered under the ESI Act effective from 01.04.2011. A copy of the notification regarding this is enclosed herewith.

This notification is applicable in the NCT Delhi region only.

Dear members,

Regarding the extension of the scheme to the shops and establishments under Section 1(5) of the ESI Act, when the number of employees is 20 or more:

According to this notification (which should be provided by the respective state governments individually), in the states that are notified, the scheme will be expanded to include all shops and establishments that employ 10 or more individuals (not necessarily employees).

Thank you.

Dear Sir,

Please let me know the strength of coverable headcount for the establishment. If there are any notifications, kindly send them to me. I would be very grateful to you.

Dear Sir,

Please let me know in Karnataka, what is the strength of coverable headcount for establishment. If there is any notification, please send it to me. It would be very grateful to you.

Dear All,

In my opinion, it should be applicable to all regions as the ESIC is a central act.

Regards,
Ravi Gupta

Is the ESIC Act applicable to: 1. Shops 2. Establishments in Karnataka having 10 or more persons?

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