ESI coverage to NGO's
gosc
(Querist) 17 January 2011
This query is : Resolved
We would like to know whether NGO's / Non-profitable organisations doing social services registered under co-operative society act must cover the ESI scheme to their staff [chennai based] or we can avoid ESI through any exemption from ESI scheme.Is it compulsory or not? We request you to send your reply to goscentral@yahoo.in
17-1-2011
Ajay Bansal
(Expert) 17 January 2011
ESI scheme is mandatory in these organisations.
gosc
(Querist) 17 January 2011
Thank You for the message
Kirti Kar Tripathi
(Expert) 18 January 2011
COVERAGE UNDER THE ESI ACT, 1948
Under Section 2(12) The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .
The State Govt. has been requested to issue notification under Section 1(5) on the lines of Section 2(12) keeping the threshold limit for coverage as 10 employees instead of 20.
The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010).
If such NGO is notified under the coverage of ESI Act, provisions of Act shall apply.
Kirti Kar Tripathi
(Expert) 18 January 2011
COVERAGE UNDER THE ESI ACT, 1948
Under Section 2(12) The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .
The State Govt. has been requested to issue notification under Section 1(5) on the lines of Section 2(12) keeping the threshold limit for coverage as 10 employees instead of 20.
The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010).
If such NGO is notified under the coverage of ESI Act, provisions of Act shall apply.
gosc
(Querist) 18 January 2011
Thank You for the message
