Our company is a software & IT company with employee’s strength less than 20. We need to know the applicability of the ESI our company.
Some says that for companies coming under factory act requires minimum 10 employees for registration and companies coming under shop and establishment act require minimum 20 employees. So, please clear us that our company comes under which Act and we need to do the registration for ESI or not.
Also clear that this limit of employees is based on the salary less than 15K or based on the total strength of the company and in case there is no employees paid with the salary less than 15K than also the company need to do the registration.
Originally ESIC Act was only applicable to non-seasonal industries (or factories) utilizing power providing employment to 20 or more individuals. But with the passage of its implementation, the provisions of this Act were modified to extend the coverage to Non-seasonal power using industries (or factories) providing employment to 10 or more individuals along with Non-power using industries (or factories) providing employment to 20 or more individuals.
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.
If your co. have 10 or more employee having gross salary up to 15000 then ESIC liability arises.
So e.g. if your co. have 50 employees & none of them or less then 10 have Gross salary up to 15000, you need not required register for ESI.
If your company have 20 or more employees, you are required to register yourself under ESI. But if all of them have salary more than 15000, you do not need to register.
So e.g. if your co. have 50 employees and any of them have salary less than 15000, you need to register your company under ESI.
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Provident Fund:
If you have 20 or more employees and any of them is having salary less than 6500, you need to register your company under PF.
Of coure contribution is required to be made in respect of employees having salary less than 6500.
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