Labour Department warns of penalties for ESI non-compliance

DIMAPUR — The state Labour Department has issued a general advisory directing all factories and establishments employing 10 or more workers to register under the Employees’ State Insurance (ESI) Scheme.

According to the department, the scheme is mandatory for employees earning a monthly wage of up to INR 21,000 and up to INR. 25,000 in the case of persons with disabilities.

The department informed that Section 2A of the Employees’ State Insurance Act, 1948 mandates all coverable factories and establishments to register within 15 days from the date the Act becomes applicable to them.

Employers are legally required to register both their establishments and eligible employees under the ESI Scheme.

It cautioned that failure to comply with the provisions of the ESI Act may attract penalties and legal action under Section 85 of the Act.

The department further stated that the ESI Scheme has been implemented across all 17 districts of Nagaland with effect from November 1, 2025, following a notification issued by the Ministry of Labour and Employment through the Gazette of India on October 17, 2025.

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In view of the implementation, proprietors and employers of eligible factories, establishments and institutions falling within the operational ambit of the Act have been urged to complete registration at the earliest.

The department reiterated that failure to register may result in penalties as prescribed under the Act.

The ESI Scheme covers employees working in factories, shops, hotels and restaurants, road transport services, newspaper establishments, educational and medical institutions, as well as casual and contractual workers employed by municipal bodies, corporations and central government entities, including public sector undertakings.

It also applies to contractors employing 10 or more workers, implementing NGOs or agencies, charitable trusts and other notified establishments.