ESI COVERAGE

As per Section 2(9) 'employee' under ESI means any person who is engaged/employed for wages/salary in connection with the work of the establishment to which this Act applies. But does not include any person whose wages (excluding OT) exceed the limit prescribed by the Central Government (which is 15000 pm now with effect from 1 May 2010).

Section 2(12) 'Establishment/Factory' under ESI means any premises whereon 20 or more persons are employed or were employed for wages.

For determining coverage of establishment.  All paid employees to be included.  But contributions  is payable only in the case of employees falling below the qualifying wage limit.  This is a judgment over ruling the Bombay & Calcutta high courts.