Yes, it needs to be covered since it employs 10 persons(sees your State notification) irrespective of the wage limit.For registration, you need to fill the forms in terms of Sec.2A read with Reg.10-B to get ESI code. Please go through the relevant section and regulations as well as ESI website.
B.Saikumar

From India, Mumbai
Dear Mr,Bijay
1.As per the amended provisions of the ESI Act, in the situation referred by you,if it is a Factory,it needs to be covered under the Act and contribution is payable for that one employee who is in the coverable wage ceiling.
2.If it is an estt,then the situation is different.It depends upon the notifications issued -extending coverage for 10 & above employees and also whether the notification speaks about "wages" for those emloyees or simply only employees..PL.check the relevant notification issued by the appropriate state govt.
Thanks& Regards
S.SANKARALINGAM
RETD.SR.DY.DIRECTOR,ESIC
ADVOCATE &LABOUR LAWCONSULTANT
mail id.srihari 1953@g mail.com

From India, Chennai
Dear sh.MEHTAji,
The word "for wages" has been omitted in the definition of factory u/s 2(12) wef 1.5.2010.The net effect is irrespective of the wages paid a factory if it employs 10&above PERSONS,then it is coverable .
Regards,
S>SANKARALINGAM

From India, Chennai
Sh. Shankaralingamji,
Yes, you are correct. Thanks for pointing out error at my level. However, when we discuss, as a habit, we add "with wages" after "employed".
With regards;
Also wish you & other contributors and family members Happy Diwali.
Harsh Kumar Mehta

From India, Noida
Dear Mona ji,
I endorse the interaction by Saikumar ji and Sankaralingam ji and would like to give hereunder a specific answer to your query.
You are in software industry operating in Bhopal having 13 employees with you altogether including of contract employees.
To you, applicability of PF and ESI is as under:
As regards to PF:
PF is not applicable to you. It is applicable on reaching 20 employees on any day including of contract employees.
As regards to ESI:
ESI is applicable to you.
State of MP has come out with notification by which the threshold limit is bought down to 10 persons irrespective of salary.
According to my knowledge, there are only three States in which the threshold limit is not bought down to 10 and they are Maharashtra, Asam and HP.
However, the ESI scheme will be applicable to those who are drawing gross less than Rs. 15000/- pm.
I hope there is no ambiguity in the minds of any body.

From India, Mumbai
Dear Friends,
The state of Tamilnadu and the U.T. of Puducherry had also brought down the limit to TEN employees.But then again whether it is total 10 or coverable 10 depends on the notification. If the notification had omitted the word wages which was available in the original 20 & above notification,then only it is total 10.Otherwise it would be 10 coverable employees.Pl.be clarified on this point.
S.SANKARALINGAM
RETD>SR>DY>DIRECTOR,ESIC

From India, Chennai
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