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Dear All, I have recently joined an IT company. Here, we have 36 employees. In February 2012, we had 20 employees, all of whom were receiving a salary of more than 16,000. However, due to some projects, we hired 16 more employees in March 2012. All of these new employees are at the junior level and receive a salary of less than 15,000.

ESI Registration Inquiry

Our company was established in 2008, but since all employees are exempt from ESI, we have not applied for an ESI number. Now, we are looking to register for ESI coverage. Could you please guide us on the procedure? Do we have to pay any penalty for late registration? If so, how much penalty will be charged?

Thank you,
Meenakshi

From India, New Delhi
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ESI Coverage and Registration Process

First, you have to check whether your company's area falls under an ESI notified area for coverage or not. If it does, you can approach your nearby ESI local office manager. They can guide you through the registration process. You can also opt for online registration. Upon request, the ESIC Local Office Manager or Enforcement Officers can visit your company to audit the base records, vouchers, ledgers, etc. If they find any wages/salaries less than ₹15,000, you will have to pay both the contributions. No interest will be charged.

Regards

From India, Coimbatore
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Applicability of the ESIC Act

The act is applicable to factories employing 10 or more workers.

Under Section 1, Subsection 5 of the Employees' State Insurance Corporation (ESIC) Act of 1948, the scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road motor transport undertakings, and newspaper establishments employing 20 or more persons.

Regards,
kscc

From India, New Delhi
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