Under Section 2(12) the Act is applicable to factories employing 10 or more persons. Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, newspaper establishments, Private Medical and Educational Institutions employing 10 or more persons (in Karnataka).
The existing wage limit for coverage under the Act is Rs. 15,000/- per month and for disabled persons it is Rs. 25,000/- per month ( w.e.f. 01/05/2010).
The ESI Scheme is being implemented area-wise covered in stages. The Scheme has already been implemented in 26 revenue districts, covering 18.50 lakhs insured persons, employed in 38,500 factories / establishments. The total number of beneficiaries under the Scheme in the State is 74.00 lakhs.