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Dear All,

Our NGO has its head office in Pune and a project office in Ahmednagar. We operate in 7 states and have approximately 300 employees. I require information on the following points regarding ESIC applicability:

1) We have received a notice from ESIC for registration after 20 years of operations.
2) If registration is necessary, how far back will they check the records?
3) How do we manage ESIC for 7 different states when we pay salaries from Maharashtra for all, despite having regional offices in respective states?
4) Is it acceptable to register in Maharashtra and have staff from other states covered under this, or do we need to register separately in each state?
5) How will the benefits be allocated state-wise if registration is in Maharashtra?
6) Currently, we have around 50 staff whose wages are under Rs. 21,000/-
7) What salary components are considered for ESIC salary calculations?

Please share your insights on proceeding with this and what precautions need to be taken.

Best Regards,
Sunil
**Location**: Pune, India
ngo forum, statutory compliance, esic applicability, salary components, Country-India, City-India-Pune,

From India, Pune
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ESIC Applicability for NGO - Salary Components for ESIC Calculations

1. ESIC Registration and Records Check:
- ESIC registration is mandatory if the number of employees crosses the threshold set by ESIC. The organization should comply with the notice received and register promptly.
- ESIC authorities may check records from the date of inception to verify compliance with ESIC regulations.

2. Managing ESIC Across Multiple States:
- For an organization operating in multiple states, ESIC registration is required in each state where the ESIC Act is applicable.
- Despite paying salaries from Maharashtra, separate registrations in other states are necessary to cover employees under ESIC.

3. Benefits Allocation and State-Wise Coverage:
- Benefits under ESIC are allocated based on the state of employment. If registered in Maharashtra, employees in other states should be covered under the respective state's ESIC registration.

4. Salary Components for ESIC Calculations:
- Salary components considered for ESIC calculations include basic pay, dearness allowance, retaining allowance, and cash value of food concessions.

5. Steps to Ensure Compliance:
- Register the NGO in compliance with ESIC regulations in each state where applicable.
- Maintain accurate payroll records with detailed salary components for ESIC calculations.
- Educate employees on ESIC benefits and deductions to ensure transparency.

By following these steps and ensuring accurate compliance with ESIC regulations, the NGO can effectively manage ESIC across different states and provide statutory benefits to employees.

From India, Gurugram
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