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Hi all seniors,

Please help me in this regard. Our employee strength is 15 now. We have not registered with PF or ESI. Now we want to take security and housekeeping on our roll. Is it necessary to pay them ESI or PF?

Please suggest me on this.

Thanks and regards,
Ashwini.

From India, Bangalore
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Even if they are not under your payroll but are working in your establishment as outsourced employees or contract employees, they will be counted for the purpose of coverage of EPF and ESI. Bringing them under your payroll, therefore, will not make any difference.

Regards, Madhu.T.K

From India, Kannur
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Hi Madhu, There is law saying mimimum 20 employees shuld be there to cover under PF.IS This rule is not applicable for ESI its based on salary limit. Thanks & Regards, Ashwini.
From India, Bangalore
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dear ashwin, if i am no wrong 20 or more without the aid of power. 10 or more with the aid of power. if u are using power then u have to do. with regards
From India, New Delhi
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dear all, i need u guys help .......... i m a bms grads and 6 months of expirienced in recruitment but now is looking out job i hr generalistic profile
From India, Vasai
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Hi KSCC, My compny is in to software industry...is it applicable to permanenr employees also(who are in company roll).wthout the matter of salary. Thanks & Regards, Ashwini
From India, Bangalore
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Dear Friends,

Under section 2(12) of the ESI Act, it is applicable to factories employing 10 or more persons, irrespective of whether power is used in the process of manufacturing or not. Furthermore, under section 1(5) of the act, the scheme has been extended to private medical and educational institutions employing 20 or more persons in certain states.

ESI COVERAGE AS ON 31ST MARCH 2010:

- Number of Insured Person Family Units: 1,43,00,000
- Number of employees: 1,38,96,150
- Total number of beneficiaries: 5,54,84,000
- Number of Insured women: 26,00,250
- Number of employers, etc.: 4,06,499

(Thanks to Business Manager - November 2010)

Regards,
Alphonse

From India, Madras
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Dear Ashwini,

For PF coverage, 20 or more employees are required. In the case of a cooperative society, it is 50. For ESI, 10 or more employees are required with the aid of power, and 20 are required without the aid of power.

Thanks,
Manish

From India, Bangalore
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The words with power and without power are going to be deleted from the coverage applicability of ESI. Similarly, the EPF will soon become applicable to establishments employing 10 or more employees. For the purpose of ESI, the number of employees as 10 or 20, as the case may be, means employees drawing a salary of Rs 15,000 per month. But for EPF, the actual number of employees will be counted for coverage, though only those employees whose BASIC Salary + DEARNESS Allowance does not exceed Rs 6,500 will be covered.

In your case, since you already have 15 employees on the roll, any addition either by direct employment or through a contractor would lead you to coverage because for coverage, it is not only salaried employees but any labor involved payment, like payments made to casual labor, would be treated as employment.

Regards,

Madhu.T.K

From India, Kannur
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Hi,

It is for your kind information that as per Section 2(12) definition of "factory," it means any premises, including the precincts thereof, where ten or more persons are employed, but does not include mines and railways effective from 1st June 2010. For detailed knowledge, please go through Notification dated 25th May 2010 (attached).

From India, New Delhi
Attached Files (Download Requires Membership)
File Type: pdf ESI (Amendment) Act 20100001.pdf (341.1 KB, 116 views)

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