Esic Coverage Mandatory For Establishments Employing Ten Or More Employees

By Author: I am Naveen kumar, a professional writer,
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ESIC COVERAGE MANDATORY FOR ESTABLISHMENTS EMPLOYING TEN OR MORE EMPLOYEES.
Every establishment whether it is a factory or other commercial establishment including education institutions and health facilities are covered under the provisions of the employee state insurance act. The only criteria through which applicability is arrived to is the number of employees employed in the organization /establishment. The statutory number of employee for coverage is 10 or more in almost all state(s) except 20 in the state of Assam, Himachal Pradesh & Maharashtra where in the number of employees required for coverage is 20.
The wages or Salary drawn is immaterial for the purpose of coverage.
To understand the position of coverage and ESIC benefits the following is the illustration.
Q: Suppose a company has 100 employees and have 6 people drawing gross salary less than or equal to 15000. Then should that company obtain ESIC registration??
Answer:
In this case, since company have employed 100 employees it clearly attracts provisions contained under section 2A of the act and accordingly the company ...
... need to take registration under ESI Act, 1948. Kindly appreciate that the total strength of employees employed by the company is taken into account while considering the applicability ESI Act. As far as contribution and benefits are concerned, it is available to the employees, who are drawing salary/wages less than Rs.15,000/ per month. Other employees whose salary is more than the statutory limit shall be treated as "exempted employees". This may kindly be noted that the statutory number of 10 applies to the most of the states in India except the state of Assam, Himachal Pradesh & Maharashtra where the number of employee for coverage is 20.