ESIC · All India
ESIC Eligibility Criteria
Two tests apply — the establishment must be covered, and the individual employee must be within the wage limit.
Establishment test
- Factories with 10 or more persons employed.
- Notified classes of establishment — shops, hotels, restaurants, cinemas, road transport, newspaper, educational and medical institutions — generally at 10 or more employees, subject to state notifications.
- The establishment must be located in an area where the ESI scheme has been implemented.
Employee test
- Monthly wages up to ₹21,000 (₹25,000 for employees with disability).
- All categories count — permanent, temporary, casual, contract and part-time employees.
- Apprentices engaged under the Apprentices Act are excluded.
Frequently asked questions
- Who is eligible for ESI?
- Employees of a covered establishment drawing wages up to ₹21,000 per month, in an area where the ESI scheme has been implemented.
- Does ESI apply if we have fewer than 10 employees?
- Generally no, but headcount includes contract and casual workers, so check the actual number engaged on any day before concluding.
Sources & references
Last Updated: 2026-09-06
Information is based on applicable laws, rules, notifications and government sources and should be verified for the latest amendments.
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