Dear colleagues,
ESI is applicable to a notified area to employees who draw wages upto Rs.15,000/ month. In case your establishment is situated in a area which is not notified, esi is not applicable , there Employees compensation Act (Workmen Compensation Act got new name as Employees Compensation Act in 2010) is applicable. Employees under EC Act, will be they who are drawing any salary/ wages but for benefit under EC Act, their salary will be treated Rs.8000/ month or if it is less than Rs.8000/ month then actual wages for benefit purposes..
You can cover any employee , any cadre under EC policy whereas if ESI is there implementable, then you may take EC policy for those who are out of ESI coverage, but taking EC policy is not in anyway compulsory to cover employees out of ESI cover .
Regds,
RDS Yadav
LABOUR LAW ADVISER
DIRECTOR-FUTURE INSTT OF MNGMNT AND TECHNOLGY