The ESI Act, 1948 is applicable to all factories and notified establishments in an implemented area employing 10 or more employees employed for wages.

a) For Factory:‑

The threshold for coverage of “factory”, as per section 2(12) of the ESIC Act is 10 which are located in implemented areas. At present the Act is extended to 529 Districts (as per list available on ESIC website at

b) For Establishments:-

i) Central Govt. has extended the coverage to following establishments, for which it is the appropriate Government, by way of a notification under section 1(5):-

Shops, Hotels, Restaurants, Road Transport Establishment, Cinema including preview theaters, Newspaper Establishment & Establishment engaged in Insurance Business, Non Banking Financial Companies, Port Trust, Airport Authorities and Warehousing establishments.

ii) State Govt. have also extended the coverage to following establishments:-

Shops, Hotels, Restaurants, Cinema including preview theaters, Road Motor Transport Undertakings, Newspaper Establishments, Educational Institutions (27 States/UTs), Medical Institutions (27 States/UTs) and Municipal Corporation/Municipal bodies employing 10 or more employees.

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