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I am new to HR, working in a small company located in Chennai with 30 employees. Could you please guide me regarding the payslip? Is ESI compulsory for all employees?

Thanks & Regards,
Gopinath S

From India, Chennai
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Yes ESI is compulsory for any unit small or big irrespectively, if the employee count is more than 20. Please get your ESI registration immediately
From India, Ahmadabad
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Dear Saji ji,

In Chennai, the threshold limit for coverage under ESIS is 10 employees.

Dear Gopinath ji,

You have 30 employees. The ESI Act is applicable to you if you are in an implemented area. Employees who are drawing a gross salary up to ₹15,000 per month are coverable under the ESI Scheme.

From India, Mumbai
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The requirement of coverage in respect of "factories" and certain "establishments" is separate. The first category of units is coverable under section 1(3) and the second category under section 1(5) of the said Act.

Threshold Limit for Coverage

The threshold limit for coverage in respect of a "factory," as defined in the ESI Act, 1948, in all implemented areas is 10 or more persons.

Coverage for Establishments

In respect of certain establishments, the majority of states, including Tamil Nadu, have also reduced the limit of coverage to 10 or more persons, i.e., at par with the coverage of a "factory." However, very few states like Maharashtra have yet to reduce the threshold coverage in respect of said establishments to 10.

The member who initiated this thread has not clarified whether the unit in which he is working is a "factory" or an "establishment" and has also not clarified whether the same is covered under the said Act or not.

From India, Noida
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ESIC is applicable to 10 or more employees if you are using or manufacturing with any type of power, such as a generator set or electricity. If you are not using any power, then ESIC is applicable to 20 or more employees as per the ESIC Act.

Regards,
D.N. Sharma

From India, Delhi
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