Dear All,
I have a query regarding the ESIC limit. What is the minimum number of employees required to start ESIC deductions? For example, if a unit has fewer than 20 employees under the salary bracket of 21,000 as per the new rule, should we start ESIC deductions for them, or are fewer than 20 employees exempted?
Regards,
Prashant
From India, Pune
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1I have a query regarding the ESIC limit. What is the minimum number of employees required to start ESIC deductions? For example, if a unit has fewer than 20 employees under the salary bracket of 21,000 as per the new rule, should we start ESIC deductions for them, or are fewer than 20 employees exempted?
Regards,
Prashant
From India, Pune
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1. Minimum number of employees required: For Pune Region, Maharashtra: "applies to all non-seasonal factories/establishments employing 10/20 or more persons, and again establishments employing 20 or more persons for wages and falling within the scope of an implemented geographical area. As of now, employees of factories/establishments that fall within the ambit of coverage and earn wages not exceeding Rs. 21,000 per month are covered under the ESI Scheme."
2. Nature of Business: Other than the previous inclusions, it has been extended to:
i. Shops
ii. Hotels & Restaurants, Clubs
iii. Cinemas, including preview theatres
iv. Newspaper establishments
v. Road Motor Transport establishments
3. Coverage as per numbers:
i. Voluntary contributions may be made even if there is only 1 employee.
ii. For establishments (not factories), if the total number of employees is 25 (or 20 or 21), and employees with wages <= 21000 are 19 (or 18 or 15), it will still fall under ESIC coverage.
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2. Nature of Business: Other than the previous inclusions, it has been extended to:
i. Shops
ii. Hotels & Restaurants, Clubs
iii. Cinemas, including preview theatres
iv. Newspaper establishments
v. Road Motor Transport establishments
3. Coverage as per numbers:
i. Voluntary contributions may be made even if there is only 1 employee.
ii. For establishments (not factories), if the total number of employees is 25 (or 20 or 21), and employees with wages <= 21000 are 19 (or 18 or 15), it will still fall under ESIC coverage.
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For the applicability of the act, the salary below or above 21,000 is not a criterion. The total number of employees is counted for applicability; if it exceeds ten for units where power is used, otherwise twenty. However, contribution is payable for the employees who draw gross wages below 21,001/-.
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Employee Salary file - India 2016 AB.xls
ESIC Wage Limit Increased.JPG