Hi,
Our company is a software & IT company with employee’s strength less than 20. We need to know the applicability of the ESI our company.
Some says that for companies coming under factory act requires minimum 10 employees for registration and companies coming under shop and establishment act require minimum 20 employees. So, please clear us that our company comes under which Act and we need to do the registration for ESI or not.
Also clear that this limit of employees is based on the salary less than 15K or based on the total strength of the company and in case there is no employees paid with the salary less than 15K than also the company need to do the registration.
Please clear my queries regarding the same.
Thanks & Regards

From India, Delhi
Dear Satya,
Greetings of the Day,
Please go through this link and it will help you a lot...............
https://www.citehr.com/430657-applic...olicy-act.html


To my knowledge a Software company comes under Shops & Establishment Act.
The eligibility criteria for ESI coverage is that there must be twenty or more employees employed in the organization and only those employees whose salary less than Rs.15000 are covered.
Regards,
Suresh

From India, Bangalore
the eligibility criteria for ESIC is minimum 10 employees for your company,
now if all the employees have salary of more than 15,000 Rs. then you are not covered in ESIC,
but if out of 10 employees even 1 employees salary is less than Rs. 15K then esic has to be taken.

From India, Calcutta
Bombay HC has held that software firms are factories under ESI act.Though this decision is not applicable to delhi, you are under Delhi S & CE Act. If you have 20 persons (not employees) working you are covered by ESI Act.
Varghese Mathew
9961266966

From India, Thiruvananthapuram
King ofKol, are you sure IT company comes under Factory Act. what is the definition of Factory which will be covered with 10, Employees, Dear Satya, Suresh is right,
From India, Mumbai
Dear Satyam Aditay,
With reference to your question your company doesn’t manufacture any product. You work like a service provider.
Secondly you have less than 20 employees it means that in future may be number of employee increase. It is my advice kindly enrolls in PF and ESI benefits.
Third , if the monthly salary more than 15000/- then there in no ESI applicable.
Regards,
Meenu Singh

From India, New Delhi
HI, irrespective of the salary we need to take registration under ESIC if employee strength is 10 Regards, Suresh
From India, Chennai
Dear Satyam Aditay,
There was a notification No.LD 323 LSI 2010 date 16-03-2011 all the establishment are covered under ESIC Act, where 10 or more employees employed in any industries
If you don't have any coverable employees (salary below 15K) than also you have to obtain code allotment letter from the department and need to submit the Nil returns on periodicaly (half yearly returns)
Mallikarjuna R
91-9986581275

From India, Bangalore
Hi all ,
any esatblishment having 10 or more emoployees and their salaries are upoto Rs.15000/- are reuired to be registered under ESI if the establishments falls within the notified area.
Even establishments hving more than 10 employees and drawing salaroes above Rs. 15000/- still it has to be registered with ESI and NIL return is to be submitted .
RL Dhingra Advocate ,
Labour law Consultants, Delhi
9818309937 Email:

From India, Delhi
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