Is ESI Required for a New Factory with Over 20 Employees but Few Earning Below 21,000?

Dear all, if a factory has more than 20 employees and only 3 employees' salaries are less than 21,000/-, is the factory eligible to provide ESI to the employees? The factory recently started the business and does not have an ESIC code.

Related news: https://www.hrkatha.com/news/esi-sch...employees-too/

Registration Requirements for PF and ESI

If the organization has more than 20 employees, then it is covered under both PF & ESI. Please register the organization under PF & ESI to obtain the code and comply immediately.

S K Bandyopadhyay [Phone Number Removed For Privacy-Reasons]

Dear Vikas, as our colleague stated, if you have more than 20 employees, you need to register with ESIC and pay the amount for all employees whose salary is below the specified limit (currently ₹21,000). Once made applicable, the act remains in force for your organization even if the numbers were to drop below 20.

You need to apply for the ESIC code by visiting the ESIC portal.

Regarding the link you have shared, don't bother with it; those are all kinds of speculations the press keeps spreading. The extension has not been applied to offices or factories that have less than 10 employees.