Director’s salary covered under ESI

Employee’s State Insurance (ESI) Act, 1948 is applicable to the factories, as defined under Factories Act, 19481. At present employees drawing salary/wages upto Rs. 10,000 per month are eligible for coverage under the Act.2

In the case of ESIC v. Haryana Biological (P) Limited, it was reinstated that, Directors drawing salary within limits prescribed under the Act are covered under the Act. Directors drawing below such prescribed salary also need be considered while computing minimum number of employees required for coverage under the Act.


Source: ESIC v. Haryana Biological (P) Limited (LLR P&H HC 38)




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