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Coverage 
Guidelines

While determining the 'coverage' of a Factory or an Establishment, the following categories of employees are to be counted in addition to the persons employed directly by the Principal Employer;
 
  • Employees on the roll of a factory, who are on leave with or without wages;
  • A substitute/badli worker employed for wages;
  • Casual or part-time employees, employed for wages
  • Directors who are on the pay roll of a company and drawing wages upto Rs. 10,000/- per month.
  • Employees earning wages upto Rs. 10,000/- per month and working in Branch offices, Sales offices etc. situated in
    implemented areas elsewhere shall be counted for purpose of coverage.
  • Employees employed by, or through a contractor, (but not the contractor himself) and working under the direct supervision of the employer or his agent within or outside the premises of factory/establishment.
  • Workers employed for construction, repair, maintenance and extension of factory building, machinery or for purpose of loading/unloading and movement of raw material or finished products.
  • Apprentice not engaged under the Apprentices Act, 1961, or under the standing orders of the establishment.
Did you know?

In all categories shown aside, only those employees drawing wages upto Rs. 6500 per mensem (excluding OTA) for the time being are to be counted for the purpose of coverage of a factory or establishment (Proviso to Section 2(9) of ESI Act.)

  Definitions
  Factory
  Seasonal Factory
  Employee
  Manufacturing unit
  Wages
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