ESIC Registration Dilemma: Should We Register with Only 6 Employees Eligible?

Suppose our company has 100 employees, and we have 6 people drawing gross salaries less than or equal to 15,000. Should we obtain ESIC registration?

Regards,
S.M

I agree with Jeevarathnam ji. In Kolkata, the threshold limit is brought down to 10 persons irrespective of salary. Currently, there are only three states in which the threshold limit is 20 persons with salaries below 15k.

In your case, since you have employed 100 employees in your company, you need to take registration under ESI, 1948. You will appreciate that the total strength of the company is taken into account while considering the application of any Act. As far as contribution and benefits are concerned, they will be available to the employees who are drawing a salary/wages less than Rs. 15,000 per month. Other employees shall be treated as "exempted employees."

Regards,
BS Kalsi, Member since Aug 2011

Friends, all the replies given to the original query are correct. After the last amendment, the salary limit is no longer relevant to decide the coverage of the factory or establishment since the earlier Supreme Court judgment in Suri's case has been buried now after the last amendment.

Regards,
O. Abdul Hameed Formerly Addl. Commissioner ESIC

Which are those 3 states? I would like to know. I thought all states had the same qualifying rules.

Good! At least I am safe in Mumbai as I will come under the exemption in Maharashtra 

State Government's Authority on ESIC Rules

What I was wondering: does the state government have the right to reduce the numbers? I always thought it was a central act and the corporation, with the approval of the central government, only can make the rules. What would then prevent a state from suddenly increasing the coverage limit to 50,000 instead of 15,000?

Dear Saswata ji,
For your information and ready reference, I am providing the provisions under Section 1(5) of the Act as follows:

Section 1(5): The appropriate Government may, in consultation with the Corporation and, where the appropriate Government is a State Government, with the approval of the Central Government, after giving one month's notice of its intention by notification in the Official Gazette, extend the provisions of this Act or any of them to any other establishment or class of establishments, industrial, commercial, agricultural, or otherwise.