Is ESI Required for a Mobile Service Center with 15 Employees? What Benefits Are Mandatory?

Dear All,

Please help:

1. Is ESI applicable for a Service center franchisee (for mobile phones, branded) proprietorship concern with 15 employees, most of whom have salaries in the range of 6000 to 10,000?

2. Apart from ESI, what other benefits are they mandatorily entitled to? Mediclaim/PF? Please shed some light; any insights are greatly appreciated! Thanks a ton!!

1. Coverage Under ESI Act, 1948

In my opinion, a service center franchisee will be considered a "shop" and hence is coverable under the ESI Act, 1948, and the rules/regulations framed thereunder if the unit has employed 10 or more persons on any day. The range of wages of persons is immaterial for the coverage of a unit. Therefore, for coverage of the unit, I suggest you contact the ESIC's appropriate social security officer who has jurisdiction in the area where your unit is located.

2. Coverage Under EPF

As far as coverage under EPF is concerned, I believe there must be 20 or more persons employed for wages, including those employed through contractors, casual workers, etc.

ESI is applicable if you are in a state which has extended the ESI scheme to establishments with 10 or more persons working. EPF is not applicable. The state's Shops and Commercial Establishments Act and the welfare funds applicable to it will have to be complied with.

VARGHESE MATHEW
0471-2542059, 08547139493

Dear Ms. Jose,

If the service center falls within the notified area of the ESI, then employees drawing a salary up to Rs. 15,000 per month will have to be covered. Additionally, the Shop and Commercial Establishments Act of the concerned state will apply, along with the Payment of Bonus Act and the Payment of Gratuity Act. Mediclaim is not mandatory as per the law. EPF will be payable if the total strength of employees reaches 20 or more.