Employees State Insurance-new notification

[DK AGGARWAL]

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

[YAGAY andSUN]

ESIC board also decided to give an option to existing insured persons to continue membership even if their wage breaches the ceiling of ₹ 21,000 per month.

[Ganeshan Kalyani]

Sir, the condition is salary, so if the salary is within the limit set in the provision then ESIC is required to be deducted and complied. Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

The views of Yagay and Sun are correct.

[DK AGGARWAL]

Dear Sir

In my query,please inform if 5 employees who are drawing salary below 21000/- limit are covered under ESI when the number required is minimum 10 whose salary is below 21000/- for coverage under ESI.

More clearly my number of employees are below 10 who are drawing salary below 21000/-, but total employees including employees drawing salary above 21000/- are 15. Is ESI applicable on 5 employees drawing less then 21000/- when they are below 10 in numbers.

Aggarwal

[Ravikumar muthusamy]

If the employee strength exceeds 10 nos then ESI coverage is mandatory and ESI contribution shall be made for the employees below the limit

[Ganeshan Kalyani]

Sir, views of Sri Ravikumar is practical. He is an expert in the filed. Thanks.

AI Summary

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.