Dear Members,

ESI Threshold in Karnataka

What is the ESI threshold in Karnataka for ESI registration? Is it 10 employees or 20 employees?

Registration Requirement for Entities with More Than 10 Employees

Further, suppose an entity has crossed the threshold of 10 employees, but none of the employees are drawing less than 21,000. Is registration under ESI still required?

From India, Bengaluru
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Further to my earlier query:

Applicability of ESI Registration

As per Section 1, it is applicable to establishments employing 10 or more persons. However, when we see the definition of an employee, it excludes employees drawing more than the prescribed limit of wages. In essence, persons drawing more than 21,000 are not considered employees at all. Therefore, there is no liability to register if there are no eligible employees.

Filing Nil Returns

Suppose we conclude that the establishment has to be registered: should we file nil returns every month since there are no eligible employees?

From India, Bengaluru
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