New to Managing ESI and PF Subcodes for Multi-State Retail Outlets – Need Guidance!

Dear Seniors, Just now, I have switched to a new company. The nature of the business is selling baby toys, dresses, cosmetics, and everything via our own outlets. In total, we have 19 outlets in 4 states - Tamil Nadu, Kerala, Andhra Pradesh, and Karnataka, if I'm correct. We need to obtain a subcode to pay their ESI and PF. I am not aware of the subcode concept. So, please educate me about it.

The locations are Chennai, Coimbatore, Hyderabad, Bangalore, Tirupur, and Cochin. In total, around 140 employees are working, with a minimum of 7 and a maximum of 27 employees per branch. As I mentioned earlier, there are 19 outlets. I hope this data will satisfy your requirements.

Regards

As per ESIC & EPF laws, the minimum eligibility is 20 employees for obtaining an ESIC code. If there are more employees than this, you can acquire a sub-code through the online ESIC and EPF portal.

Regards

Clarification on ESI Act Coverage Requirements

1. It is incorrect to suggest that for coverage under the ESI Act of 1948, there must be at least 20 employees, as mentioned by one of the contributors above. The minimum requirement is for 10 or more persons. Only 2-3 states, such as Maharashtra, have not reduced the number of employees to 10 or more persons. Firstly, the main unit of your "shop" is required to obtain the ESI Code Number. If your unit is located in Chennai (Tamil Nadu), you can contact the nearest ESIC office to obtain the Code Number.

2. After obtaining the Code Number from ESIC, you can apply for and obtain Sub-Code Numbers for the respective Branch Offices/Sales Offices located in other regions/sub-regions of ESIC. You can receive guidance and information on the above subject from the ESIC office located in Chennai.

What if a company does not have a branch office in another state but is providing services in that state? Does it require an ESI subcode? And if it does, does it require a branch office in that state? Please help.

Regards