Whether esic is mandatory if the company is not having any manufacturing unit.
From India, Kolkata
Acknowledge(0)
Amend(0)
1From India, Kolkata
Acknowledge(0)Amend(0)
ESIC is related to employment strength. If employed in an establishment where "power," i.e., electricity is used, then it is mandatory for exceeding ten employees. In all other cases, it is mandatory when the employment strength exceeds twenty. It is nowhere related to manufacturing or non-manufacturing bifurcation.
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Kolkata
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Ahmadabad
Acknowledge(0)Amend(0)
Mr. Saji,
Thank you for your advice. If I am not wrong, if the employees fall under Rs. 21,000/- or less and the strength of the organization is 10 or more, ESIC is mandatory; otherwise, it is not mandatory.
From India, Kolkata
Acknowledge(0)Amend(0)
Thank you for your advice. If I am not wrong, if the employees fall under Rs. 21,000/- or less and the strength of the organization is 10 or more, ESIC is mandatory; otherwise, it is not mandatory.
From India, Kolkata
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
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
Acknowledge(0)Amend(0)
From India, Kolkata
Acknowledge(0)Amend(0)
Dear Ms. Jyothi,
It would not be appropriate for the forum member to reply in a vague manner. Please provide full details in order to present a comprehensive view. If the number of employees in an organization exceeds the eligibility criteria, and if even one employee (e.g., peon, sweeper, security guard, clerk, or any individual earning below 21,000 salary) is on the payroll, ESIC registration becomes mandatory. The option for employees to choose not to deduct ESI contributions will not be applicable.
Hope this clarifies.
From India, Ahmadabad
Acknowledge(0)Amend(0)
It would not be appropriate for the forum member to reply in a vague manner. Please provide full details in order to present a comprehensive view. If the number of employees in an organization exceeds the eligibility criteria, and if even one employee (e.g., peon, sweeper, security guard, clerk, or any individual earning below 21,000 salary) is on the payroll, ESIC registration becomes mandatory. The option for employees to choose not to deduct ESI contributions will not be applicable.
Hope this clarifies.
From India, Ahmadabad
Acknowledge(0)Amend(0)
Sir, when a company or unit is manufacturing and employing persons as required under the ESI Act, 1948, it becomes a "factory" and therefore, coverable under section 1(4) of the said Act with effect from the date it employed 10 or more persons, provided the area is implemented/notified under section 1(3) of the said Act. Even if after coverage, the said factory stops the manufacturing process, it still continues to be covered as laid down under section 1(6) of the said Act. The term "manufacturing process" has very wide connotations and almost includes every repair, maintenance, preservation, etc.
If the unit is not using the manufacturing process since its start and falls under another category of establishments, then it can still be covered under the said Act, provided that the nature of the unit and the minimum persons so required fall 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 an implemented area within section 1(3) of the said Act.
As mentioned by Sh. Saji above, I think this forum could have discussed in more detail had the person who started this thread mentioned complete facts and the nature of the working of the said company.
From India, Noida
Acknowledge(0)Amend(0)
If the unit is not using the manufacturing process since its start and falls under another category of establishments, then it can still be covered under the said Act, provided that the nature of the unit and the minimum persons so required fall 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 an implemented area within section 1(3) of the said Act.
As mentioned by Sh. Saji above, I think this forum could have discussed in more detail had the person who started this thread mentioned complete facts and the nature of the working of the said company.
From India, Noida
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.