Whether esic is mandatory if the company is not having any manufacturing unit.
From India, Kolkata
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1From India, Kolkata
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ESIC is related to employment strength. If employed in an establishment where "power," i.e., electricity is used, then it is mandatory for exceeding ten employees. In all other cases, it is mandatory when the employment strength exceeds twenty. It is nowhere related to manufacturing or non-manufacturing bifurcation.
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Thank you for your kind response. Please let me know, whose salary is Rs. 21000/- or less and if the member is not interested to continue ESIC deduction, whether it is acceptable or mandatory
From India, Kolkata
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From India, Kolkata
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ESIC Registration is mandatory if your company falls under the ESIC criteria as mentioned by U S Sharma, it is not on the employee’s interest to be taken for
From India, Ahmadabad
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From India, Ahmadabad
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Mr. Saji,
Thank you for your advice. If I am not wrong, if the employees fall under Rs. 21,000/- or less and the strength of the organization is 10 or more, ESIC is mandatory; otherwise, it is not mandatory.
From India, Kolkata
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Thank you for your advice. If I am not wrong, if the employees fall under Rs. 21,000/- or less and the strength of the organization is 10 or more, ESIC is mandatory; otherwise, it is not mandatory.
From India, Kolkata
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In order to deduct Employee Share of ESI Contribution, Employer should have Registered the Establishment with ESI Code Number.Whether Your Establishment is Registered under ESI Act?
From India, New Delhi
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From India, New Delhi
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once the establishment is covered under ESIC, then there is no choice /option is there for employees, if their gross wages is below 21000, they have to contribute under ESIC scheme
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Dear All, Thank you all for your kind advice. Now it is clear to me. Our Organisation is Registered under ESI Act. Regards
From India, Kolkata
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From India, Kolkata
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Dear Ms. Jyothi,
It would not be appropriate for the forum member to reply in a vague manner. Please provide full details in order to present a comprehensive view. If the number of employees in an organization exceeds the eligibility criteria, and if even one employee (e.g., peon, sweeper, security guard, clerk, or any individual earning below 21,000 salary) is on the payroll, ESIC registration becomes mandatory. The option for employees to choose not to deduct ESI contributions will not be applicable.
Hope this clarifies.
From India, Ahmadabad
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It would not be appropriate for the forum member to reply in a vague manner. Please provide full details in order to present a comprehensive view. If the number of employees in an organization exceeds the eligibility criteria, and if even one employee (e.g., peon, sweeper, security guard, clerk, or any individual earning below 21,000 salary) is on the payroll, ESIC registration becomes mandatory. The option for employees to choose not to deduct ESI contributions will not be applicable.
Hope this clarifies.
From India, Ahmadabad
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ESIC Coverage for Factories and Establishments
When a company or unit is manufacturing and employing persons as required under the ESI Act, 1948, it becomes a "factory" and is therefore coverable under section 1(4) of the said Act, effective from the date it employs 10 or more persons, provided the area is implemented/notified under section 1(3) of the Act. Even if, after coverage, the factory stops the manufacturing process, it continues to be covered as laid down under section 1(6) of the Act. The term "manufacturing process" has very wide connotations and almost includes every repair, maintenance, preservation, etc.
If the unit is not using the manufacturing process since its start and falls under another category of establishments, it can still be covered under the Act, provided that the nature of the unit and the minimum number of persons required fall within the ambit of a notification issued by the appropriate government under section 1(5) of the Act. In this case, the area must also be an implemented area within section 1(3) of the Act.
As mentioned by Sh. Saji above, I think this forum could have discussed in more detail had the person who started this thread mentioned complete facts and the nature of the working of the company.
From India, Noida
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When a company or unit is manufacturing and employing persons as required under the ESI Act, 1948, it becomes a "factory" and is therefore coverable under section 1(4) of the said Act, effective from the date it employs 10 or more persons, provided the area is implemented/notified under section 1(3) of the Act. Even if, after coverage, the factory stops the manufacturing process, it continues to be covered as laid down under section 1(6) of the Act. The term "manufacturing process" has very wide connotations and almost includes every repair, maintenance, preservation, etc.
If the unit is not using the manufacturing process since its start and falls under another category of establishments, it can still be covered under the Act, provided that the nature of the unit and the minimum number of persons required fall within the ambit of a notification issued by the appropriate government under section 1(5) of the Act. In this case, the area must also be an implemented area within section 1(3) of the Act.
As mentioned by Sh. Saji above, I think this forum could have discussed in more detail had the person who started this thread mentioned complete facts and the nature of the working of the company.
From India, Noida
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My company registered in ESIC but no employees has salary less than 21 K. So what is the compliance we have to do?? How to file Challan of contribution when there is no contribution??
From India, Delhi
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From India, Delhi
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You can inform the concerned Branch Office Manager and the Regional Director of ESIC, to which your unit is attached, that there were no coverable employees during the month. Discuss the matter with the above authorities and, if necessary, file a NIL report during specific period(s) to avoid any ad hoc assessments that may classify your unit as a defaulter. Exact wages of Rs. 21,000 per month are also coverable. For exemption, the wages must exceed the present coverable limit.
Kind Regards,
[Your Name]
From India, Noida
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Kind Regards,
[Your Name]
From India, Noida
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Can a company have an option of giving esic or group insurance if few of the employees salary is below 21k and more above 21k??
From India, Mumbai
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From India, Mumbai
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Dear Nitin,
Coverage under the ESI Act is compulsory subject to the applicability clause to your establishment. For employees who are above the ESI coverage limit, i.e., Rs 21,001 and above, you may cover them under a Group Insurance Scheme as decided by your company.
From India, New Delhi
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Coverage under the ESI Act is compulsory subject to the applicability clause to your establishment. For employees who are above the ESI coverage limit, i.e., Rs 21,001 and above, you may cover them under a Group Insurance Scheme as decided by your company.
From India, New Delhi
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