Applicability of esi

APPLICABILITY
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons. 

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons. 

Further 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/UTs. 

*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same. 

The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010). 
AREAS COVERED 
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories of Indian Union. 
STATES 
All the States except Manipur, Sikkim, Arunachal Pradesh and Mizoram. 
 

Dear Sir,

Plz reply whether it is applicable or not for employees drawing a salary of 30,000 per month in the example which I have stated.

ESI Amendment Act 2010 2(12):..................... all employees employed irrespective of payment of wages can now be counted for the minimum number of 10/20.

Therefore register and file NIL return since wages of all employees are above wage ceiling.

Thanks for u r reply............

I am aware of this section in ESI act.

For the same question ,what is the answer regarding the applicability of PF act? i.e,

Company having more than 24 employees where all are drawing salary more than 30,000 each pm.

Plz reply................................

{------Discussed in other initiated by you:

https://www.lawyersclubindia.com/forum/Applicability-of-pf-95236.asp#.Usj2C9IW1MA

No. of employees>20.

Since the Act is applicable the establishment may enroll and fee may be very low say Rs.7/month..............................

Employer can concur to provide PF up to PF wages Rs.6500/pm................................................or even to the current salary..................

There are multiple benefits of EPF, EPS, EDLI, advance from the fund......................

---- NO private general/life insurance can match the benefits offered by ESIC e.g;

The wards of ESIC members are eligible to seek admission in ESIC medical college; the benefits shall continue even after separation due to dismissal, retirement against a very nominal fee, unemployment allowance............................................there are major reliefs for employer too..................

There is no ceiling on expenditure on the treatment of an Insured Person or his family member. Medical care is also provided to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs.120/- .

Along with ESIC if employer is providing for some Group Insurance then the premium is usually adjusted in CTC............

ESIC has already posted on its website that:

·                                 Minimum wage limit for Physically Disabled Persons for availing ESIC Benefits is 25,000/-.

With online access the intervention/intrusion by Inspectors has virtually ended and operation is smooth........................

You may go thru:

https://www.esic.nic.in/benefits.php

https://www.moneycontrol.com/news/investing/the-various-benefitsyour-employee-provident-fund_775030.html

https://www.epfochennai.tn.nic.in/benefits.html

----All of these benefits can have better impact on employee and employer too.

Advice the employer properly.

----Even if your objective of initiating this thread is to avoid registration due to wage ceiling on PF/ESIC only we are afraid that you shall have to still register.

Meet RPFC/PRO in nearest PF office............................................................Officials in nearest jurisdictional ESIC office, before taking a final call.

 Let their opinion and direction be final on the query raised by you.

Attached:

Minimum wage limit for Physically Disabled Persons for availing ESIC Benefits is 25,000/-.

https://www.esic.nic.in/benefits.php

well elaborated by Mr Kumar Doab