Is ESIC Registration Necessary for My Company with No Employees Earning Below 21,000?

SRINIVAS MANGENA
Hi Experts, it would be great if someone could guide me. I run a company with 28 employees as of today in Pune, Maharashtra. All have gross salaries above 21,000 per month. All are covered under EPF. Now, one of my clients is insisting on having ESIC registration.

Questions about ESIC Registration

Here are my questions:

1. Without having any employees with a gross salary below 21k, is it mandatory to have ESIC registration?
2. If it is mandatory, the online ESIC employer registration portal is not allowing entry of any number less than 20.

I am looking for help and advice. Thanks
rkn61
Referring to your mail, you have stated that all your employees have a gross salary above 21,000/- but they are covered under PF. The PF salary ceiling is only 15,000/-. Those employees whose salary is up to Rs. 15,000/- could be covered under PF.

ESI Applicability

Currently, ESI is applicable only to establishments (Factory, Shop, Commercial establishments, Educational Institutions, Hospitals, Laboratories) where a minimum of 10 employees have worked for at least one day. Now, the new Labour Code is approved by the President of India and also published in the Official Gazette, dated 29th Sept 2020. As per the new Code, even if only one employee is working in establishments where hazardous or life-threatening work is carried out, ESI conditions shall be applicable.

Wages for Contributions

While considering "wages" for making contributions, the components such as House Rent Allowance, overtime allowance, commission, and travel allowance are excluded, as per the new Code.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute