Yes Mr. Deepak is right. The Applicability is based on the number of employes ( 20 or 20+ on any working day) not based on the salary. Contributing to ESI is based on the Salary limit.
From India, Lucknow
1From India, Lucknow
Hi
As per the latest amendment in the esi rules, at least 20 employees must be drawing up to Rs.10000/pm and only then the est. is coverable. Suppose u r having 30 employees but less 20 employees r drawing salary for less than 10000/pm, u r not coverable.
Thanks
Sanjeev Kwatra
From India, Delhi
As per the latest amendment in the esi rules, at least 20 employees must be drawing up to Rs.10000/pm and only then the est. is coverable. Suppose u r having 30 employees but less 20 employees r drawing salary for less than 10000/pm, u r not coverable.
Thanks
Sanjeev Kwatra
From India, Delhi
Hi All
Wage Ceiling: Every employee drawing wages upto Rs. per month is required to be insured under the Act.
Applicability:-Section 2(9) 'employee' under ESI means any person who is engaged/employed for wages/salary in connection with the work of the establishment to which this Act applies. But does not include any person whose wages (excluding OT) exceed the limit prescribed by the Central Govt. (which is 10000 pm now).
Section 2(12) 'establishment' under ESI means any premises whereon 20 or more persons are employed or were employed for wages.
If you combine both, you understand that if 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. Hence on above grounds it is not covered
Thanks & regards
Sayed Iqbal
Excel Consultancy Services
From India, Mumbai
Wage Ceiling: Every employee drawing wages upto Rs. per month is required to be insured under the Act.
Applicability:-Section 2(9) 'employee' under ESI means any person who is engaged/employed for wages/salary in connection with the work of the establishment to which this Act applies. But does not include any person whose wages (excluding OT) exceed the limit prescribed by the Central Govt. (which is 10000 pm now).
Section 2(12) 'establishment' under ESI means any premises whereon 20 or more persons are employed or were employed for wages.
If you combine both, you understand that if 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. Hence on above grounds it is not covered
Thanks & regards
Sayed Iqbal
Excel Consultancy Services
From India, Mumbai
Dear Friend,
Both the sections are independent , & we can not consolidated each other for our expression because in the Act its not mention that both conditions are commulative they are independent,
20 or more employee & 10,000 or less two independent conditions are thre,
first 1 is the coverage of establishment and 2nd one is for contribution.
so if no one is getting 10,000 or less but if the no. of employee are 20 or more, then also they need the registration, however the contribution will be nil.
Rgds,
Deepak Singh
From India, Mumbai
Both the sections are independent , & we can not consolidated each other for our expression because in the Act its not mention that both conditions are commulative they are independent,
20 or more employee & 10,000 or less two independent conditions are thre,
first 1 is the coverage of establishment and 2nd one is for contribution.
so if no one is getting 10,000 or less but if the no. of employee are 20 or more, then also they need the registration, however the contribution will be nil.
Rgds,
Deepak Singh
From India, Mumbai
This est. is not coverable under ESI Act.. u may also confirm the same from esic office. Sanjeev Kwatra
From India, Delhi
From India, Delhi
Section 2(9) and 2(12) - Meaning of the words employee and factory - A person getting more wages than the limit prescribed by the Central Government under Section 2(9)(b) would not be an employee within the meaning of Section 2(9). Therefore, where thirteen out of twenty four persons working with a company were getting more wages than the said prescribed limit, the company would not be a factory within the meaning of Section 2(12) and the Act would not be applicable to the company.
Sayed Iqbal
Excel Consultancy Services
From India, Mumbai
Sayed Iqbal
Excel Consultancy Services
From India, Mumbai
Dear Subhash
If u have 20 or more employees, u must take code. whether the employees are coming under the slab or not, ie secondary issue. u r telling the present status. who knows tomorrow.
Krishna Mohan
From India, Hyderabad
If u have 20 or more employees, u must take code. whether the employees are coming under the slab or not, ie secondary issue. u r telling the present status. who knows tomorrow.
Krishna Mohan
From India, Hyderabad
Hi sayed
can u give some more insight in this.
an organistion is covered under ESI act but latter on no of employees reduce from the limit as prescribed by the law, whether still it will be covered under esi act.
can u give some more insight in this.
an organistion is covered under ESI act but latter on no of employees reduce from the limit as prescribed by the law, whether still it will be covered under esi act.
Hi
Once the Establishment/factory is covered under ESI ACT, then even if the Total number of employes reduce below the prescribed limit, the establishment will continued to be covered under the ACT and the ESI has to be deducted to all the eligible employees
From India, Lucknow
Once the Establishment/factory is covered under ESI ACT, then even if the Total number of employes reduce below the prescribed limit, the establishment will continued to be covered under the ACT and the ESI has to be deducted to all the eligible employees
From India, Lucknow
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