klncs
19

Dear Friends,
Nature of Company - Software
Total No of ee's - 32
Coverable ee's(ESI)- 12
(i.e, below 15000/-)
Now pl tell me in dis case, whether ESI is coverable or not.
Thanks & Regards
Murthy

From India, Hyderabad
madhu_d
I too have a similar scenario.
We are a software firm with 30 employees and we have not yet registered with ESI.
Can some one suggest me whether ESI is applicable to software companies too?
We have gone for PF, but not ESI. I read somewhere that ESI is not applicable to software/IT firms.
Any suggestions are appreciated.

From India, Kochi
pmir_law
17

Dear Friends,
COVERAGE UNDER THE ESI ACT, 1948
Under Section 2(12) The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .
The State Govt. has been requested to issue notification under Section 1(5) on the lines of Section 2(12) keeping the threshold limit for coverage as 10 employees instead of 20.
The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010).
Warm Regards,
Mahesh Kumar Pandey

From India, Delhi
jaisingh1
As on today, even if you have 10 employees (and none of them coverable, i.e none drawing salary less than or equal to Rs 15000) you are coverable under ESI act. Production of software is a manufacturing process and hence applicability of ESI act.
From India, Bhopal
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