Registration under esi act

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Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2011 Is it necessary for a manufacturing unit employing more than 20 (minimum prescribed by the Act); where all are drawing more than Rs.15000 per month (the threshold fixed by the Act is Rs.15000)

a) If yes; please give reference
b) If no; suggest why not be exempted..

U S Sharma

U S Sharma (Expert)
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01 September 2011 manufacturing units are eligible at TEN employees.

for calculating the strength of eligibility all employees are covered, irrespective of wage limit.

over 15000 would be excluded for contribution purpose only, not for eligibility.

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2011 From the reply,
I can un'stand that registration is not compulsory..!! if all the employees in a manufacturing unit is drawing the threshold limit are exempted from registration.

Am I right sir...

U S Sharma

U S Sharma (Expert)
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09 September 2011 if a unit has 20 employees over 15000 but one employee below 15000, then that one employee is eligible to get the benefit, under the registration of the unit.

fopr registration purpose the persons over 15000 are counted, but their contribution is not payable.

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