applicability of ESI on labour payments

This query is : Resolved 

08 June 2016 dear all, company paying wages to individuals who are not employees outside persons providing services to company. whether company liable to ESI on those payments

08 June 2016 if you are company have 10 employee then you have to pay the ESI on all payment made as labour exp,

08 June 2016 if Employees is 10 or more , Whether employed Directly or indirectly by way of contract ESI is applicable , Principal Employer is responsible for Deduction of ESI.
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.

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).


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