Hi All,
ESI coverage is applicable to "an establishment employing more than 20 people".
Does this mean 20 people with salary less than or equal to 15k p.m or is this coverage irrespective of the salary?
Our total strength is 70 and only two of them have salaries less than 15k p.m. Do we have to cover them under ESI or not?
Pl help.
From India, Hyderabad
5ESI coverage is applicable to "an establishment employing more than 20 people".
Does this mean 20 people with salary less than or equal to 15k p.m or is this coverage irrespective of the salary?
Our total strength is 70 and only two of them have salaries less than 15k p.m. Do we have to cover them under ESI or not?
Pl help.
From India, Hyderabad
As per the Supreme court's decision in the case of M/s M.M. Suri Associates (May'1998), only employees drawing wages within the wage ceiling limit are to be counted for the purpose of coverage of a factory or establishment. This decision has been accepted by ESIC. However, to overcome the effect of this judgement, the ESIC has amended the defintion of the factory under Section 2(12) with effect from 1st June, 2010, eliminating the concept of wages and power. Now any factory engaged in a manufacturing process and employing 10 or more persons attracts ESI. However, the coverage under the establishments is still with 20 coverable employees with in the wage ceiling limits. Many State Governments have issued preliminary notifications proposing to reduce the coverage limit to 10 persons on par with the definition of the factory. Once the final notification is issued by any State Govt. the new provision will come in to force.
From India, Hyderabad
From India, Hyderabad
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ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf
ESI coverage - Rajasthan 2016.jpg