ESIC is applicable based on the number of employees, not on arrears. For non-seasonal factories, it applies to those with 10 or more employees. In the case of seasonal factories, ESIC applies to those with 20 or more employees.
The contribution on arrears of wages paid to any employee is payable under the ESI Act, 1948 from the date the said enhancement of wages is announced by the employer. Earlier, a detailed discussion was held on the same topic. The reference is mentioned as follows:
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