Is ESI Deduction Mandatory for a Retired Employee Still Working with Full Benefits?

We have one employee who retired in 2016 and is still in service, receiving all benefits such as PF, Bonus, and Leave Encashment. His pay package includes HRA, Medical Allowance, Conveyance, and other allowances, similar to all employees on the payroll. His work location is in a hill station in Tamil Nadu, where he serves as the caretaker of the company Guest House. His salary is processed at the Corporate office in Chennai. This area was not covered under ESI during his service period, but it is now covered.

His current gross salary is below Rs. 21,000/-. Before retirement, he was not a member of ESI because his gross salary exceeded the earlier ceiling of Rs. 15,000/-.

My question is whether it is mandatory to deduct ESI from his salary and remit the contributions to ESI. If so, we will need to register in the ESIC portal as a new IP. I kindly request seniors to provide their opinion on this matter.

Regards,

Employee ESI Coverage in Implemented Areas

In my opinion, if the wages of the employee posted in the Guest House of the Company are booked in the company's accounts, then the employee (even though retired) is covered or coverable from the date the area is declared as an implemented area under Section 1(3) of the ESI Act, 1948, or from the date the said employee is posted in the implemented area, whichever is later.

However, for more clarification and procedures, it would be better to contact the appropriate Branch Office of ESIC for the area of the said "hill station" as mentioned by you. Although you can obtain the Insurance Number of the said employee by complying with the online procedure, I feel that the appropriate Branch Office of ESIC is the concerned office that can guide more accurately in procedural matters.

Regards,

ESIC has no bar for age factor. If the employee had ESIC membership at any time during their lifetime service, then that card can get validated. Yes, the employer has to obtain a subcode for that specific location (newly implemented area).