ESI Scheme for Start-Ups: How Do We Begin the Process for Our Small Team?

Hello everyone, I am an HR Generalist in a start-up firm. We are having a doubt regarding the ESI Scheme. How should we start the process to avail ESI for our organization and employees? We are having 15-20 employees. It would be a great help if you could guide on the same.

ESI Scheme Applicability

The ESI scheme applies to all factories and other establishments, as defined in the Act, with 10 or more persons employed. Additionally, beneficiaries whose monthly wage does not exceed Rs 21,000 are covered under the scheme.

In case your startup is in an ESI-covered area, subject to the aforementioned applicability, you need to ensure ESI coverage. It is advisable to inquire and start coverage at the earliest; otherwise, once the ESI Corporation initiates coverage, it will ask for contributions from day one.