Is ESIC Registration Needed for Companies with All Employees Earning Above Rs. 21,000?

Dear All,

For an organization with a headcount of more than 10 (close to 200) and everyone whose salary is over Rs. 21,000, is it mandatory to have ESIC registration? If yes, then what kind of returns are submitted when there is no one in that category.

Please help us understand.

Thanks! Ajay Mali

Dear Friend,
The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries' monthly wage does not exceed Rs 21,000 are covered under the scheme.
If your employees wages exceeds 21,000 then no need of registering under ESIC.

Thanks for your response, Ravi. It's the same argument we have with our compliance partner - that our company size is more than 200, and we have ensured that their salaries are more than ₹21,000. However, they state that even in that case, we should get the registration done and file NIL returns, which logically doesn't sound correct.