We started deducting ESI when we crossed 10 employees formula ( including two directors) from June 2014. But soon after three employees resigned the company. Should we continue paying ESI for rest of eligible employees ( 5 only) ? How we can stop ESI for 7 employee company ( including 2 directors) ?
Thanks in advance.
From India, Ludhiana
Thanks in advance.
From India, Ludhiana
Dear member,
1. Since you deducted ESI contribution, then it is presumed that had obtained code number under said Act.
2. Your unit once covered under provisions of ESI Act,1948 will continue to be covered irrespective of the fact that the number of employees have reduced from coverable limit. Even if your unit has one coverable employee, compliance is required to be made for one employee. Please refer to section 1(6) of said Act.
From India, Noida
9231. Since you deducted ESI contribution, then it is presumed that had obtained code number under said Act.
2. Your unit once covered under provisions of ESI Act,1948 will continue to be covered irrespective of the fact that the number of employees have reduced from coverable limit. Even if your unit has one coverable employee, compliance is required to be made for one employee. Please refer to section 1(6) of said Act.
From India, Noida
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ESI contribution rates lowering.pdf