Is Your Company Exempt from ESIC if Salaries Exceed 21,000? How to Handle It

Rajesh Tomar
Dear Colleagues'
I want to ask about that if the salary of all employee of any company is more than 21,000 than company should have to registered under ESIC Act or not & if not, I have to submit a letter to esic authority & what will be the format of that letter.
Warm Regards
R.K Tomar
Srinath Sai Ram
Dear Rajesh,

If the ESI Act is applicable to your establishment, go ahead. ESI contributions should only be paid in respect of employees who fall under the purview of the Act, i.e., those earning Rs21,000 and below per month.
Glidor
Registration is mandatory, and contribution is applicable only for the employees earning under 21000/- per month.

Please let me know if you need any more assistance.
Rajesh Tomar
Dear Sir,

All employees are receiving more than 21,000. Registration is mandatory. A letter is not required.

Thank you.
Venkata Vamsi Krishna Patnaik
Dear Rajesh Tomar,

You can submit a letter stating the reason for not contributing, which would be a ready reference for future compliance audits. You can provide a letter with your organization details, date of commencement, nature of operation, etc., along with the annexure of employee salaries.
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