Whether esic is mandatory if the company is not having any manufacturing unit.
From India, Kolkata
Glidor
632

ESIC is related with employment strength and if employed in a establishment where "power" i.e electricity is used , then mandatory for exceeding on TEN employees, and in all other cases it is mandatory when the employment strength exceeds TWENTY
it is nowhere related with manufacturing or non manufacturing bifurcation.


Thank you for your kind response. Please let me know, whose salary is Rs. 21000/- or less and if the member is not interested to continue ESIC deduction, whether it is acceptable or mandatory
From India, Kolkata
ESIC Registration is mandatory if your company falls under the ESIC criteria as mentioned by U S Sharma, it is not on the employee’s interest to be taken for
From India, Ahmadabad
Mr. Saji,
Thnak you for your advice. If I am not wrong, if the employees falls under Rs. 21000/- or less and the strength of the orgnasation is 10 or more ESIC is mandatory otherwise it is not mandatory.

From India, Kolkata
In order to deduct Employee Share of ESI Contribution, Employer should have Registered the Establishment with ESI Code Number.Whether Your Establishment is Registered under ESI Act?
From India, New Delhi
Glidor
632

once the establishment is covered under ESIC, then there is no choice /option is there for employees, if their gross wages is below 21000, they have to contribute under ESIC scheme

Dear All, Thank you all for your kind advice. Now it is clear to me. Our Organisation is Registered under ESI Act. Regards
From India, Kolkata
Dear Ms Jyothi
It would not be appropriate for the forum member to give reply in vague, please give full details so as to give appropriate view. If the strength of any organisation is exceeding the eligibility criteria and if even one employee (i.e. peon or, sweeper or security guard or clerk or any person below 21000 salary) is there on roll then ESIC registration becomes mandatory. The choice of employees not to deduct ESI contribution will not apply, Hope this clears

From India, Ahmadabad
1. Sir, when a company or unit is manufacturing and employing persons as required under ESI Act, 1948, it becomes a "factory" and therefore, coverable under section 1(4) of said Act w.e.f. the date it employed 10 or more persons provided the area is implemented/notified under section 1(3) of said Act. Even if after coverage, the said factory stops manufacturing process, still the same continue to be covered as laid down under section 1(6) of said Act. The term " manufacturing process" is of very wide connotations and almost also include every repair, maintenance, preservations etc. etc.

2. If the unit is not using manufacturing process since its start and falls under other category of establishments, then the same can still be coverable under said Act, provided that the nature of said unit and minimum persons so required falls within the ambit of notification issued by the appropriate government under section 1(5) of the said Act. In this case also the area must be implemented area within section 1(3) of said Act.

3. As mentioned by Sh.Saji above, I think, this forum could have discussed in more detail had the person who started this thread would have mentioned complete facts and nature of working of said company.

From India, Noida
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