Hello Seniors,

If a company provides medical allowances to employees, is it compulsory for them to contribute to ESIC?

Note: Total number of employees in the company is 22 (Twenty-Two). The number of employees with a gross salary less than 21000 is 9 (Nine).

Please revert ASAP.

From India, Pune
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If your establishment is located in the notified area, you have to register your establishment with ESIC, even if you are paying a medical allowance to your employees and the number of employees whose wages are below 21,000 is 9. The only criterion on the basis of which an establishment can claim exemption from the ESI Act is when it provides better benefits than under the Act.

B. Saikumar
HR & Labour Relations Adviser
Navi Mumbai

From India, Mumbai
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