Dear Friends,
I appreciate your responses, but my question is still pending. Suppose in a company the total employee strength is 140, out of which only 16 employees are getting a salary less than 10,000/-, and the rest are above the slab. The company is registered under the Shops & Establishments Act. It is a real estate company.
In this case, is the company liable to take an ESI code, or does it need to do so when it reaches 20 coverable employees?
I hope all of you have a clear picture of ESI.
Thanks,
Subhash Baloni
From India, Delhi
Acknowledge(0)
Amend(0)
I appreciate your responses, but my question is still pending. Suppose in a company the total employee strength is 140, out of which only 16 employees are getting a salary less than 10,000/-, and the rest are above the slab. The company is registered under the Shops & Establishments Act. It is a real estate company.
In this case, is the company liable to take an ESI code, or does it need to do so when it reaches 20 coverable employees?
I hope all of you have a clear picture of ESI.
Thanks,
Subhash Baloni
From India, Delhi
Acknowledge(0)Amend(0)
Applicability is based on the number of employees. Hence, an organization with 140 employees will be covered under the ESI. If only 16 are drawing a salary (as per ESI Act definition), then only 16 are covered employees, and the rest are exempted employees. Against them, the employer need not contribute to ESI.
About the coverage of the establishment, the Act does not say anything about how much salary the organization gives, but only the number of employees is concerned.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
4482About the coverage of the establishment, the Act does not say anything about how much salary the organization gives, but only the number of employees is concerned.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
Dear Friend According to teh recent ammendment u need not to take ESI code Dear Mr.Siva Kindly give your view Vasanth
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Vasu,
I could not find any new interpretation to the particular section dealing with applicability. There may be establishments not covered because of being in an uncovered area or due to some reasons exempted by the State Government by notification.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
I could not find any new interpretation to the particular section dealing with applicability. There may be establishments not covered because of being in an uncovered area or due to some reasons exempted by the State Government by notification.
Regards,
Madhu.T.K
From India, Kannur
Acknowledge(0)Amend(0)
As per the Employees' State Insurance (ESI) Act, the applicability is for 20 or more employees, with a salary/wages of 10,000 or less. This means the applicability is based on two tiers: first on the establishment and then on the employee.
If an establishment has 20 or more employees, they need to register themselves regardless of the salary/wages. The contribution is then based on the salary. Even if none of them are earning 10,000 or less, the establishment still needs to register. In that case, the contribution is not mandatory, but if they choose to contribute, there are no restrictions. I hope it is clear now.
If there are still any questions, please feel free to ask.
Regards,
Deepak Singh
Email: dks.ica@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
If an establishment has 20 or more employees, they need to register themselves regardless of the salary/wages. The contribution is then based on the salary. Even if none of them are earning 10,000 or less, the establishment still needs to register. In that case, the contribution is not mandatory, but if they choose to contribute, there are no restrictions. I hope it is clear now.
If there are still any questions, please feel free to ask.
Regards,
Deepak Singh
Email: dks.ica@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
Hi All,
The application of ESI to any establishment is once 20 or more persons are employed, irrespective of the salary drawn by them. Hence, you have to take the registration under the ESI Act.
However, the eligibility for contributing to ESI and receiving benefits is only for those who are earning less than ₹10,000 per month.
From India, Lucknow
Acknowledge(0)Amend(0)
The application of ESI to any establishment is once 20 or more persons are employed, irrespective of the salary drawn by them. Hence, you have to take the registration under the ESI Act.
However, the eligibility for contributing to ESI and receiving benefits is only for those who are earning less than ₹10,000 per month.
From India, Lucknow
Acknowledge(0)Amend(0)
Hi All,
Though the company is registered under the Shops & Establishment Act, it has to be registered under ESIC because the number of employees is more than 20, even though out of 140 employees, only 16 are drawing a salary less than Rs. 10,000/-.
In the absence of an ESI Code, if you fail to remit ESIC at 6.75%, it attracts penalties/statutory obligations as per the ESIC Act.
Thanks & Regards,
Bhavya
From India, Kochi
Acknowledge(0)Amend(0)
Though the company is registered under the Shops & Establishment Act, it has to be registered under ESIC because the number of employees is more than 20, even though out of 140 employees, only 16 are drawing a salary less than Rs. 10,000/-.
In the absence of an ESI Code, if you fail to remit ESIC at 6.75%, it attracts penalties/statutory obligations as per the ESIC Act.
Thanks & Regards,
Bhavya
From India, Kochi
Acknowledge(0)Amend(0)
I am enclosing a text from the web page of ESIC. Some link and address are also there in the text. You may open the web page and go through about the act. You may find answer.
From India, Calcutta
Acknowledge(0)Amend(0)
From India, Calcutta
Acknowledge(0)Amend(0)
Dear Friend,
The applicability of ESI is based on the number of employees, i.e., 20 or more. However, the contribution is based on the salary structure, and applicability and contribution are different things. Therefore, if an establishment has 20 or more employees, the ESI Act will be applicable irrespective of the salary or wages drawn by the employee.
Regards,
Deepak Singh
Email: dks.ica@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
The applicability of ESI is based on the number of employees, i.e., 20 or more. However, the contribution is based on the salary structure, and applicability and contribution are different things. Therefore, if an establishment has 20 or more employees, the ESI Act will be applicable irrespective of the salary or wages drawn by the employee.
Regards,
Deepak Singh
Email: dks.ica@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Friend,
As you mentioned, as per the recent amendment, the ESI code is not required even if the number of employees is more than 20, but if they are receiving a salary less than 10,000. It's really surprising. Can you please clarify the contents or reference of the amendment so that I can update myself? Because as per the Act, the applicability of the ESI Act is based on the number of employees; then the contribution question will arise. For that, we have to consider the salary/wages of the employee. If the salary/wages are less than or equal to 10,000, then only they are liable to contribute. If none of them are receiving salary/wages in that range, in that case, the contribution will be NIL, but still, the ESI Act will be applicable.
Regards,
Deepak Singh
dks.ica@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
As you mentioned, as per the recent amendment, the ESI code is not required even if the number of employees is more than 20, but if they are receiving a salary less than 10,000. It's really surprising. Can you please clarify the contents or reference of the amendment so that I can update myself? Because as per the Act, the applicability of the ESI Act is based on the number of employees; then the contribution question will arise. For that, we have to consider the salary/wages of the employee. If the salary/wages are less than or equal to 10,000, then only they are liable to contribute. If none of them are receiving salary/wages in that range, in that case, the contribution will be NIL, but still, the ESI Act will be applicable.
Regards,
Deepak Singh
dks.ica@gmail.com
From India, Mumbai
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.
Changes in the Applicability and Coverage of ESI Scheme under the Code on Social Security.doc
Applicability of ESI Act.pdf