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JAGADEESH (XXXX)     18 May 2010

ESI COVERAGE

Respected Seniors,

In a company below Rs.15000/- salary drawn persons 15 are working and 5 persons are above Rs.15000/- salary drawn.

In this regard for coverage of  ESI total 20 persons are required.  Basing on the above break up, the company covered under ESI?  Kindly suggest me...

Regards,

Jagadeesh



Learning

 1 Replies

Reetu Dwivedi (Paralegal)     18 May 2010

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.

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