Coverage of an employer:
The Employees’ State Insurance Act covers all the establishments (employers) both of seasonal & non-seasonal nature which employ 10 or more workmen and the wage of the workmen is under 21000 INR per month or 25000 INR per month in case of disability.
The Scheme under the Employees’ State Insurance Act covers shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, newspaper establishments, establishments engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities and Warehousing establishments which employ 10 or more employees. Furthermore, all the Private Medical Institutions, Educational institutions and to contract and casual employers of Municipal Corporation/Municipal Bodies employing 10 or more persons are covered. However, in Maharashtra, the scope of coverage is narrow because it is applicable only to establishments employing 20 or more people. And even if the number of employees decrease after an establishment is covered under the scheme, the establishment would not be exempted.