Is Our Agri Business Eligible for ESI Coverage with Employees in Two Locations?

Dear all, I am Shalaka Patade. I have a query regarding ESI applicability. Please guide me on the same. We are a subsidiary of a company in the Agri Business sector, specifically in the seeds business. Our office in Ahmedabad is registered under The Shops and Establishments Act, with 14 employees, including sales and marketing staff.

Additionally, we have a farm in Bangalore where research activities take place, with 7 employees working there. Among the total employees, 2 in Ahmedabad and 7 in Bangalore receive a monthly salary below Rs. 15,000.

My question is: Is the ESI Act applicable to us?

Regards,
Shalaka Patade

If all the persons are working at different locations and receiving salaries through the same (single) company, then all employees will be grouped together for ESI strength eligibility, which requires a minimum of 20 employees. If the above clarification suits your situation, then regardless of the number of members receiving salaries less than Rs. 15,000, your establishment would be covered under the ESI Act.

Any establishment where 20 or more persons are employed, either at one location or different locations, will be covered under the provisions of the ESI Act. The ESI Authorities have issued a notification through which establishments where 10 or more persons are employed for wages/salary, not salary ceiling, will now be covered under the application of the ESI Act.

You are requested to kindly check with your Area ESI Inspector whether they are covering establishments based on the Act or based on the new Notification.

Dear team, I would be grateful if anyone could share the notification issued by ESI regarding the ceiling of 10 numbers, rather than the wage ceiling of Rs 15,000.

As desired, I am attaching the ESI Gazette Notification for your reference.
Regards.