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Hi,

Could someone help me to understand whether an agency/contractor whose registration office is in Ahmednagar, where ESIC registration is not applicable, can provide manpower on contract in areas of a city like Pune where ESI is applicable? Would such an agency/contractor be exempted from paying the ESI contribution, i.e., (4.75%) of the wages of employees?

Please help me understand this.

Thank you

From India, Pune
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If the establishment where the workers are engaged is covered by ESI, it is mandatory to get them covered even if the Registered Office of your labour supply establishment is not covered. In such cases, the employees will have to take insurance numbers from the establishment's registration itself.

Regards,
Madhu.T.K

From India, Kannur
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Thank you so much for your reply. Do you mean to say that employees should obtain their insurance number from the Principal Employer if the labor supplier is not covered? Could you please clarify this further?
From India, Pune
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Here, there are two issues:

1. If the registered office is in a non-implemented area and some of the employees are working in an implemented area: In such a case, the responsibility of coverage of such employees will not hold on such a contractor. Further, if he has any branch office in the implemented area and has a sufficient number of coverable employees attached to such branch office, irrespective of the fact that the registered office is in an implemented area or not, the branch office can be registered with ESI separately.

2. In case the branch office does not qualify for individual coverage due to fewer employees, the compliance regarding these employees should be made by the Principal Employer in whose premises these workers are working for wages if such Principal employer was already registered with ESIC.

Hope I clarified your doubt. If not, don't hesitate to raise the query or call me on 09443434313 or email me at

From India, Hyderabad
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Sir,

Thank you very much for your useful reply. The confusion is clear but one doubt arises in the mind: if the Principal Employer has permanent employees with wages exceeding Rs 10,000, he does not need to register for ESI. However, if such a Principal Employer needs to hire employees on contract through a labor supplier whose office is registered in a non-implemented area like Khandvi (Ahmednagar) and does not have ESI registration, can the Principal Employer take contractual employees from such a labor supplier? What is the responsibility of the Principal Employer in such a case?

From India, Pune
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From India, Hyderabad
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ESIS is applicable to a notified area. The premises of the work, if it is a notified area under ESIS and the Principal Employer is registered under the Act, irrespective of the number of employees of the Contractor, ESIS has to be paid, provided their salaries are less than Rs. 15k.

If the Contractor has the requisite number of employees, he can apply for a separate code if he has a long-term contract and works with the Principal Employer. Otherwise, the amount of ESIS can be paid under the code of the principal employer.

Ravindra Chaubal
9960735999

From India, Nasik
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Hi All, Can anyone please suggest the procedure for ESI registration(for the company). How does one register online. Regards, Pinky Basak
From India, Ahmadabad
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Hi,

Can someone help me out here? If an employee has a salary of less than 15K per month, is it mandatory for the employer to apply for the ESIC benefit for such employees? Also, are these employees eligible for PF benefits? I need more clarification regarding ESIC.

Thanks.

From India, Chandigarh
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Dear Bina, Yes it is mandatory to pay ESIC benefit if the Gross is 15K or less also the number of employees isat least 20.
From India, Mumbai
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