ESIC Applicability If 17 Employees Are Below Wage Celing Of 21000 Out Of 40 Employees.

Shru P
I would like to know what will be the ESI Eligibility on the wage celing of 21000.
i.e we have 40 employees in our company out of which 17 employees gross salary is below 21000, so are we liable to register with ESIC.???
Shruti.P
HRD
Glidor
at present threshold limit is 15000/-
as mentioned by you there are 40 employees, so ESIC act is applicable to the establishment.
if any of employee is below 15000/- then you have to maintain the formalities and pay the ESIC contribution of those employees,
employees drawing over 15000 are out of contribution, but included in manpower for implementation of ESIC act
SrAdvBhat
yes you're, it doesn't matter how much is your employees salary, you need to register if:
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.
Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.
Please read further for all frequently asked questions about ESI: https://biblehr.com/esic-frequently-asked-questions/
on a side note: ESI new wage limit of Rs 21000/- is under consultation, you need to wait till the final approval.
BRPM
Hello Shruti,
Yes, the threshold limited is now increased to 21,000 from the previous 15,000 threshold. When you say, some of them are falling under the "21,000 category" you need to go for ESI. I strongly suggest to check with your company auditor as well before taking the steps. By the way, you might be aware that the ESI change effect is effective Oct 01 2016.
Thanks.
KFII BAWAL
Hello,
As per my knowledge, when any employer engaged 10 or more employee in there organization. But the employer will liable for coverage under ESI, which day a employee join within the ESI limit. Then no matter the even though 39 employees not under the ESI but if any one will come under the ESI then you have to comply all statutory compliance under the ESIC Act, 1961.
Thanks
Sukh Dev Singh
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