Are Part-Time Employees Earning Under 15k Covered by ESI? Seeking Clarity

All Respected Seniors, you are all requested to please clarify my doubt. My doubt is, suppose any organization has some part-time employees who are getting 8k to 12k for 2-4 hours. Now, if the organization is covered under the ESI Act, then what will be the responsibilities of the employer on their behalf? Will they all be covered under the ESI, as they are getting less than 15,000/-, which is the wage ceiling for ESI? Please help me in this regard.

Any employee working in a covered establishment is eligible for ESI if their wages are below ₹15,000. He/she, whether temporary, part-time, or full-time, should be covered under ESI. Any person who has worked for even one day in a covered establishment should be covered under ESI. All persons employed for wages drawing an amount within the wage ceiling and engaged in clerical, manual, skilled, semi-skilled, or unskilled work without distinguishing casual, temporary, technical, or non-technical categories should be covered.

Thank you.

Part-Time Employees and ESI Coverage

Part-time employees are also to be covered in the ESI scheme like regular employees.

Regards,
Varghese Mathew
Consultant (HR & LL)
Base India Business Solutions
India Towers
Edapazhanji
Trivandrum

It is not compulsory to cover part-time employees if they are earning more than Rs. 15,000 per month. Typically, these part-time employees earn between Rs. 8,000 and Rs. 12,000 for 2-4 hours of work. However, if there is a specific appointment clause stating that the monthly salary falls below the limit of Rs. 15,000, then ESI contribution must be paid.

In cases where there is a specific agreement outlining fixed working hours, and these employees work for another establishment during the rest of their hours, showing their salary received from the other employer and paying income tax, they will be considered exempted employees. Specific conditions apply.

Regards,
R. B. Yadav
Advocate