Dear All,
under ESI Act any premises whereon 20 or more persons are employed or were employed for wages.
If we combine both, the total employees are 25 but out of which 14 are drawing gross more than 10000 pm, then only 11 employees come under ESIS and the criteria for 20 employees does not fulfill. Kindly confirm whether this establishment covered under above grounds?
regards,
RNSWAMY
From India, Mumbai
4under ESI Act any premises whereon 20 or more persons are employed or were employed for wages.
If we combine both, the total employees are 25 but out of which 14 are drawing gross more than 10000 pm, then only 11 employees come under ESIS and the criteria for 20 employees does not fulfill. Kindly confirm whether this establishment covered under above grounds?
regards,
RNSWAMY
From India, Mumbai
For a factory 10 employees is sufficient for coverage of ESI whereas for other establishments it is 20. A factory or establishment once covered will continue to be covered even if the number of employees falls bellow 10/ 20. However, for initial coverage the number of employees who are out of coverage due to their salary being more than Rs 10000 will not be counted. Therefore, if in an establishment (not a factory) all employees except 11 are drawing salary more than Rs 10000, then such an establishment will not be covered for the time being.
This is not so for Employees Provident Fund for which an employment strength of 20 is sufficient for coverage irrespective of whether the employees get salary less than or more than Rs 6500. Here, if the establishment employs more than 20 then the establishment will be covered by EPF and, of course, those whose salary exceeds Rs 6500 will be excluded from contribution and coverage.
Regards,
Madhu.T.K
From India, Kannur
This is not so for Employees Provident Fund for which an employment strength of 20 is sufficient for coverage irrespective of whether the employees get salary less than or more than Rs 6500. Here, if the establishment employs more than 20 then the establishment will be covered by EPF and, of course, those whose salary exceeds Rs 6500 will be excluded from contribution and coverage.
Regards,
Madhu.T.K
From India, Kannur
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ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf
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