Dear Madam/Sir
Recently notification has been issued increasing the covering limit of 21000/- in place of 15000/- wef 1st Sep16.
Please clarify if in organisation in Delhi, where 15 employees are working and out of which 10 employees are getting salary above 25000/- and remaining 5 are getting below 15000/-., whether ESI act is applicable as eligible employees are only 5.
Aggarwal
ESI Coverage Mandatory for Organizations with Over 10 Employees, Regardless of Earnings Below New Limit of 21,000. A notification increased the Employee State Insurance (ESI) coverage limit from 15,000 to 21,000 effective September 1, 2016. A query was raised about the applicability of ESI for a Delhi organization with 15 employees, where only 5 earn below 21,000. Responses indicated that ESI is mandatory if the total employee count exceeds 10, regardless of how many earn below 21,000. Existing insured individuals can maintain their membership even if their wages exceed the new ceiling. The consensus was that ESI contributions are required for eligible employees if the overall employee count is above 10. (AI Summary)
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