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

AI Summary

ESI coverage applies where establishment size exceeds the required threshold; contributions are due for employees within the wage ceiling.
ESIC contributions are required for employees whose wages fall within the statutory ceiling, and existing insured persons may opt to continue membership even if their wages later exceed that ceiling. When an establishment's workforce exceeds the statutory threshold for mandatory coverage, the employer must make ESIC contributions for employees whose wages remain within the wage ceiling.