ESI in the Fitness Industry: Are Your Gym Employees Covered?

Hi All,

Can you please help me out if the ESI is applicable to employees working in the fitness industry? There are 6 employees earning a salary of 15000 per month and 5 employees earning a salary of 25000.

Thanks,
Sagar

Sir, you are providing services to the customers/clients against some charges you collect, and hence your establishment may qualify as a "shop" and thus be coverable under the ESI Act, 1948 by virtue of employing 10 or more persons under section 1(5) of the said Act. However, if you desire, or have some doubt, you can take up the issue with the appropriate office of ESIC or the authority of the area where your unit is located.

Hello,

As per the recent ESIC Act amendment, employees earning up to Rs. 21,000 gross are eligible under ESI. Since you have 10 or more employees, you will be eligible under ESI.

Warm Regards,
Deena

Hi, Sagar.

Yes, you are entitled to avail ESIC coverage. According to the ESI Act, if the total number of employees is 10 or above and even if one employee is drawing a salary less than the coverage limit, you are required to register.

Hello all,

I have a query: If all employees have a salary (basic) greater than 21,000 and are on contract, is ESI applicable?

Thanks,
Aditi Upadhyay

ESIC Applicability for Contract Employees

It does not matter that the employees are on contract. At any place where there are more than 10 employees working (20 for some states like Maharashtra), you are covered by ESIC. Once you are covered, you are required to be registered, even if all the employees are above the limit.

Further, the contractor is required to register and pay the ESIC even if he has less than 10 employees. If the contractor does not register and pay, then you, as the principal employer, will be required to pay the same. There is a separate section in the ESIC portal for paying the contractor's employees.