Sir,

This is to inform you that I am the owner of a company with 50 employees working in it. However, there are only 4 employees whose total salary is less than 15000.

So, is it necessary for me to register my company under ESIC? If it is necessary, please tell me the steps to register my company in ESIC with 4 members. I have heard that a minimum of 10 employees is required to register the company under ESI Online.

An early reply will be highly appreciated.

From India, Gurgaon
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Total number of employees should be 10 and if any 1 employee is getting paid less than 15000 then its mandatory to register under ESI. I hope you have PF & PT registrations
From India, Bangalore
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Dear Mr. Tarun,

ESIC registration is mandatory if 10 or more employees are employed irrespective of their salary. You can visit the ESIC website at ESIC and register your company under ESIC. Yes, it is true that you will be asked to provide a declaration of 10 employees during the registration process. You can include the names of employees who are earning a salary of more than ₹15,000, but you are not liable to pay contributions for them.

For further clarification, you can contact me at 9722965801 or email me at .

Thank you.

From India, Mumbai
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I would disagree with the above posts. The ESIC applicability is for companies with 20 or more workers (some states have reduced the number to 10). However, the definition of a worker is someone who has a salary of less than ₹15000. So unless you have at least 10 people with salaries below that level, ESIC will not apply to you. This was confirmed by the ESIC inspector at one of our client's places a year ago.
From India, Mumbai
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Dear Mr. Banerjee,

Thank you for your advice. I am certain that even if one employee is earning less than ₹15,000, then it is applicable. For example, we are the victim of this situation. As an HR person, I advised our management about ESIC enrollment, but they did not consider enrolling. Our total employee strength is about 23, and in any given calendar month, there were not even 5 employees earning less than ₹15,000. Normally, salaries are above ₹17,000, except for a few freshers for 3-4 months. An inspector imposed interest and penalty on us for the last 3 years.

From India, Bangalore
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And I have a letter in writing from the ESIC inspector confirming that we are not covered because fewer than 20 employees have a salary below ₹15,000. I think the local guys take any interpretation they like. The cost of fighting it is unfortunately very high. One option is to approach the ESIC office for confirmation...


From India, Mumbai
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Everything is done. I even met with the commissioner's office, and it has been confirmed. Initially, the company was required to have a minimum of 10 employees who are covered. However, as per the amendment in June 2010, it is clearly mentioned that the total employee strength should be considered, not just those under 15,000.

For your reference, I am enclosing a copy of the amendment as well.


From India, Bangalore
Attached Files (Download Requires Membership)
File Type: pdf ESI COVERAGE ON 1O EMPLOYEE01042011.pdf (1.94 MB, 407 views)

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