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Esic applicable for private hospital

RAHUL KAMBLE (TAX CONSULTANT) (28 Points)

07 December 2016

Dear Sir/Madam, Is ESIC applicable for Hospital Services

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185411 Points)
Replied 08 December 2016

YES, to Private organizations employing more than 10 persons.

APPLICABILITY

Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.

Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.

*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are in the process of reducing the same.

The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f. 01/05/2010).