if we started provident fund scheme for employees then its compulsory to start esic. Regards Supriya
From India, New Delhi
From India, New Delhi
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Hi Miss. Sugapriya,
As per government rules, it is compulsory for all employees working in our organization. Now, the ESI limit is 21000. Those earning more than 21000 are not eligible for ESIC.
Thanks & Regards,
Nagarjun R HR Admin Papas Trading Private Limited
From India, Bengaluru
22As per government rules, it is compulsory for all employees working in our organization. Now, the ESI limit is 21000. Those earning more than 21000 are not eligible for ESIC.
Thanks & Regards,
Nagarjun R HR Admin Papas Trading Private Limited
From India, Bengaluru
Dear member,
Coverage under both Acts, namely EPF & MPs Act, 1952, and ESI Act, 1948, is separately determined and is not dependent on each other. The departmental authorities are also different. In Delhi, the threshold for coverage under the ESI Act, 1948, is employment of 10 or more persons in factories or selected notified establishments. On the other hand, I believe the threshold for coverage under EPF is the engagement of 20 or more persons. Therefore, any factory or establishment is required to be covered based on 10 or more persons, even before coverage under EPF.
However, regarding coverage under the ESI Act, the coverage is contingent upon the area being declared as an implemented area, whereas there is no such condition in EPF.
To prevent any errors in coverage decisions, it would be better to contact the ESI authorities in your area to determine the position regarding the coverage of the establishment where you are employed. This step may help avoid penalties and damages if it is later discovered that the establishment/factory was required to be covered retrospectively.
Please review and ensure compliance with the requirements of both Acts.
Thank you.
From India, Noida
Coverage under both Acts, namely EPF & MPs Act, 1952, and ESI Act, 1948, is separately determined and is not dependent on each other. The departmental authorities are also different. In Delhi, the threshold for coverage under the ESI Act, 1948, is employment of 10 or more persons in factories or selected notified establishments. On the other hand, I believe the threshold for coverage under EPF is the engagement of 20 or more persons. Therefore, any factory or establishment is required to be covered based on 10 or more persons, even before coverage under EPF.
However, regarding coverage under the ESI Act, the coverage is contingent upon the area being declared as an implemented area, whereas there is no such condition in EPF.
To prevent any errors in coverage decisions, it would be better to contact the ESI authorities in your area to determine the position regarding the coverage of the establishment where you are employed. This step may help avoid penalties and damages if it is later discovered that the establishment/factory was required to be covered retrospectively.
Please review and ensure compliance with the requirements of both Acts.
Thank you.
From India, Noida
Since you are covered under PF,it means you have 20 or more employed persons.So ESI is applicable to you,if your establishment is situated in the area where the ESI Act is implemented.
From India, Thiruvananthapuram
From India, Thiruvananthapuram
I would also like to add that for coverage of the establishment, the quantum of wages being paid to employees has no relevance. If you employ 10 or more employees, you are under ESI coverage provided your establishment is situated in an implemented area, even if all are being paid more than Rs 21,000.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
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