Is ESI Mandatory for All Employees, Including Those with Higher Wages? Let's Discuss

Hi all,

Kindly let me know if ESI is compulsory for all employees or not. Even a higher-wage employee comes under this or not. If yes, then how and why?

ESI is applicable for employees who are drawing a gross salary of $15,000 or less only.

Thank you.

Dear member, coverage under the ESI Act, 1948, and the rules/regulations framed thereunder is not optional. If the factory/unit is coverable, compliance in respect of coverable employees is compulsory. Employees receiving wages exceeding the coverable limit (except the amount of overtime) cannot be covered from the start of the new contribution period.

Dear All,

Please find attached copies of the notification by ESIC extending the coverage to all the districts of Maharashtra, Bihar, Rajasthan, and Karnataka. Over the next few months, the scheme may gradually expand to all states, ensuring that all employees are covered and can access the benefits provided by ESIC, including the recently amended Maternity Benefit.

Regards,
N. Nataraajhan
Sakthi Management Services
HP: +91 94835 17402
Email: natraj@sakthimanagement.com

Dear All,

For ESIC, please let me know what needs to be done for statutory compliance to avoid legal implications when working in remote areas or outside the ESIC coverage area in the construction industry.