Query About Registration Under ESIC

The number of employees (ten) for coverage purpose is including those who draws more than Rs 15000. Coverage to establishment and coverage to employees are two different factors. An establishment, whether factory or commercial establishment, employing at least 10 employees either directly or through contractor, whether they get less than or more than Rs 15000 as salary will be under cover of ESI and within that establishment only those getting Rs 15000 or less are covered as covered employees.

An establishment once covered will continue to be covered till its winding up. That means if all employees start getting more than Rs 15000 or the coverable limit fixed by the ESIC (which can be increased anytime and ESIC is going to increase it!) the establishment will remain covered and returns (NIL return) will have to be submitted as required even though the establishment is not making any contribution. Of course, if the increase in the salary takes place during a contribution period, invariably, contribution should be paid till the end of that contribution period.

Since all casual employees are covered by the Act, it is practically difficult to say that all are out of cover and there should be some one who is getting salary within the limit fixed by the ESIC, I believe.

Regards,

Madhu.T.K

Dear Mr. IR-MANAGER,
One correction, it is not my definition, I just quoted from the ESI Act.
I think you got the answer from the post of Mr.Madhu T.K.
You just have to submit a nil return, if all the employees salary above the ceiling limit.
Regards,
J.Basak

Dear IR Manager,
For your quiery, your industry is covered under the ESI Act. But, the employees who asre drawing more than Rs. 15000/- are exempted from the coverage. You need not to deduct any amount from the Employees towards the ESI. When these employees are not covered under the ESI and Management has not paid its share of contribution, the employees will not get any benefits. The Management has conver these employees either under Workman compensation act or any other medical benefits scheme such as Mediclaim etc.
Hope this clarifies your doubt.
G.K,.Mnjunath
Sr. Manager-HR