It is heard that ESIC limit is likely to be increased up to Rs. 25,000. Such discussions/meetings are ongoing between the concerned authorities. Does anybody have confirmed news about it?
Regards,
Pramod Thakar
From India, Pune
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35Regards,
Pramod Thakar
From India, Pune
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Dear Pramod,
I don't know how you got this information about ESIC amount increasing by Rs. 25,000. If ESIC has increased, they will send an official letter to the company or publish it in any newspaper. If you want confirmation, please go to the ESIC office and get information from them.
P. Packiaraj
From India, Bangalore
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I don't know how you got this information about ESIC amount increasing by Rs. 25,000. If ESIC has increased, they will send an official letter to the company or publish it in any newspaper. If you want confirmation, please go to the ESIC office and get information from them.
P. Packiaraj
From India, Bangalore
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Dear Pramod, So far I have not heard anywhere that ESI limit is increased. Normally any such news, concerned authoritieswill communicate well in advance Regards V Rama Murthy GM - HR
From India, Hyderabad
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From India, Hyderabad
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I think we should not discuss the matters on assumption / rumors. If you have some solid ground it is welcome. Best wishes,
From India, New Delhi
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From India, New Delhi
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Dear All,
Thank you for your comments. I had shared the information which I received. This is not at all on an assumption basis. These comments I heard from the ESIC Office when there was an official meeting held in the ESIC Pune office. Fortunately, I had visited the said office for some work, and the concerned officials were not in place. Upon inquiry, I heard this news. There might be a primary stage, they might be taking a review from their Regional/Sub-regional offices.
Thanks & Regards,
Pramod Thakar
From India, Pune
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Thank you for your comments. I had shared the information which I received. This is not at all on an assumption basis. These comments I heard from the ESIC Office when there was an official meeting held in the ESIC Pune office. Fortunately, I had visited the said office for some work, and the concerned officials were not in place. Upon inquiry, I heard this news. There might be a primary stage, they might be taking a review from their Regional/Sub-regional offices.
Thanks & Regards,
Pramod Thakar
From India, Pune
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Dear All,
Proposals like this may be put forward for approval by departments, and the final figure arrived at might be much less. This happens in all departments, including price rises, etc. So even if such proposals are being discussed, the final figure may be much less and may take many years before being approved.
I would also like to point out that this may be objected to by many and is not practical in many cases. Such a figure also covers employees with taxable income and many staff under the executive cadre who do not wish to take any medical assistance from ESIC.
Therefore, it is better to avoid discussing these issues. Let the notification/order be released for us to discuss.
Regards,
Siva
From India, Mumbai
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Proposals like this may be put forward for approval by departments, and the final figure arrived at might be much less. This happens in all departments, including price rises, etc. So even if such proposals are being discussed, the final figure may be much less and may take many years before being approved.
I would also like to point out that this may be objected to by many and is not practical in many cases. Such a figure also covers employees with taxable income and many staff under the executive cadre who do not wish to take any medical assistance from ESIC.
Therefore, it is better to avoid discussing these issues. Let the notification/order be released for us to discuss.
Regards,
Siva
From India, Mumbai
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Dear Sir, Cud anyone tell me the current ESIC Limit and how much amout of funeral benefit according to ESIC and also tell wt provision in the death case acdng to ESI. Thanks & Regards, Harinder Singh
From India, Bangalore
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From India, Bangalore
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Dear Seniors,
Actually, ESIC officials have proposed to increase the ceiling up to ₹25,000. The reason is that employers are engaging in malpractices. For example, if an employee is earning ₹14,500 per month:
- Employee contribution: ₹254
- Employer contribution: ₹689
- Total: ₹943
Instead of paying ₹14,500 to the employee and contributing ₹943 to ESIC (Employee State Insurance Corporation), the employee is not receiving many benefits. This is why employers (HR) are avoiding ESI coverage.
Due to these reasons, ESIC is reluctant to lose the contributions. Additionally, most companies are paying salaries close to ₹15,000. Given these circumstances, ESIC is considering raising the ceiling to ₹15,000.
If anything is found wrong, "I'm sorry."
With Culinary Regards,
Dinesh L.
From India, Coimbatore
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Actually, ESIC officials have proposed to increase the ceiling up to ₹25,000. The reason is that employers are engaging in malpractices. For example, if an employee is earning ₹14,500 per month:
- Employee contribution: ₹254
- Employer contribution: ₹689
- Total: ₹943
Instead of paying ₹14,500 to the employee and contributing ₹943 to ESIC (Employee State Insurance Corporation), the employee is not receiving many benefits. This is why employers (HR) are avoiding ESI coverage.
Due to these reasons, ESIC is reluctant to lose the contributions. Additionally, most companies are paying salaries close to ₹15,000. Given these circumstances, ESIC is considering raising the ceiling to ₹15,000.
If anything is found wrong, "I'm sorry."
With Culinary Regards,
Dinesh L.
From India, Coimbatore
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We have read the newspaper regarding the same. The newspaper is named Dainik Bhaskar, dated 18/09/2012, printed in Panipat (HR) Region. However, the effective date was not mentioned there, but it may be effective from 1st October 2012 as mentioned.
Regards,
Pankaj Kumar Jha
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Regards,
Pankaj Kumar Jha
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Hi all,
I read in the newspaper that a ministerial and authorities' level meeting was held this week, during which it was decided to revise the limit to Rs. 25,000 so that more people can be covered and benefit. It may take time to implement the changes in the act and release the notifications due to technical delays. This information was revealed by one of the central ministers in his inaugural speech at an ESIC dispensary in Kerala, as reported by Mathrubhumi.
From India, Madras
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I read in the newspaper that a ministerial and authorities' level meeting was held this week, during which it was decided to revise the limit to Rs. 25,000 so that more people can be covered and benefit. It may take time to implement the changes in the act and release the notifications due to technical delays. This information was revealed by one of the central ministers in his inaugural speech at an ESIC dispensary in Kerala, as reported by Mathrubhumi.
From India, Madras
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First Published: Fri, Sep 20 2013. 11 32 PM IST Livemint.com
Salary cap raised for availing ESI benefits
All workers who draw a salary of up to Rs.25,000 will get medical benefits from facilities that ESIC runs directly or has a tie-up with
Prashant K. Nanda
Labour minister Sis Ram Ola says besides workers, their families will also benefit from the increase. The government has expanded the number of people eligible for Employees’ State Insurance (ESI), which provides medical care to industrial workers and their dependents, by increasing the salary cap of beneficiaries to Rs25,000 from Rs15,000, ignoring opposition from employers.
The labour ministry’s move, which sceptics say is politically motivated as it comes in the run-up to a round of state elections and a national election next year, will directly benefit an additional 4.5 million industrial workers.
The revision in the ceiling means that all industrial workers who draw a salary of up to Rs.25,000 will benefit from medical and hospitalization facilities at more than 1,550 clinics and hospitals that the Employees’ State Insurance Corporation (ESIC) runs directly or has a tie-up with. Every month, eligible employees contribute 1.75% of their salary and employers contribute 4.75% to the ESI corpus.
“It will benefit millions of our industrial workers across India. Besides workers, it is their families who will also benefit from the increase in ceiling,” labour minister Sis Ram Ola said on Friday.
The decision was taken despite objections from employers’ representatives at a closed-door meeting in Delhi on Thursday.
“Several members opposed the move, but the labour minister advocated for it and passed the proposal,” said an internal note reviewed by Mint.
The last increase in the salary ceiling for ESI was made in May 2010, when it was raised to Rs.15,000 from Rs.10,000. Currently, around 15 million workers directly benefit from the employees’ insurance provisions, and after the revision, the total number of insured people will increase to 20 million. If one includes beneficiaries from the families of the insured workers, at least 65 million people, largely in urban areas, will benefit from the scheme.
While the government believes that the decision was made to widen the social security safety net, experts and an employers’ association said that the move was populist in nature, keeping in mind the impending Lok Sabha election next year and state assembly elections in states such as Delhi and Rajasthan this year. The labour minister belongs to Rajasthan.
“The ministry has taken a stand to increase the wage ceiling and it will benefit the people at the grass roots. With elections coming, the ruling party will benefit,” said G. Sanjeeva Reddy, president of Indian National Trade Union Congress, a national trade union associated with the Congress party.
Though the ESI clinics have a reputation for poor service and inadequate treatment, insured individuals are entitled to avail of facilities like outpatient treatment, specialized consultations, hospitalization and referral services in tertiary-care hospitals. They are entitled to get medicines, ambulance services and immunization schemes among other family welfare services.
“The ministry did not listen to the employers’ representatives properly in the meeting,” said Michael Dias, secretary of the Employers’ Association in Delhi. “The bigger picture is: primary treatment for which maximum number of workers go to ESI dispensaries is inadequate.”
Since people are not even getting satisfactory services now, increasing the pool of beneficiaries will only worsen the situation, he said.
From the corporate sector point of view, Dias said, the move would lead to labour unrest in companies and less salary. “Since the employers and employees will contribute to the ESI corpus, the take-home salary will be less for those who are now getting added to the ESI pool. A reduction in salary and poor medical service will lead to labour protests and industrial unrest,” Dias added.
When the ESI provisions were first introduced in 1952, the wage ceiling was Rs.400, Dias said. “It took 16 years to get revised to Rs.500; how come the labour ministry is increasing the ceiling by almost Rs.10,000 in just three years,” he asked.
Reddy, however, said that the increase in ESI ceiling will now influence the demand for increasing the minimum wage for getting covered under the employees’ provident fund (EPF).
The current ceiling for mandatory EPF deduction is Rs.6,500 and the demand is for making it at least Rs.10,000.
From India, Bangalore
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Salary cap raised for availing ESI benefits
All workers who draw a salary of up to Rs.25,000 will get medical benefits from facilities that ESIC runs directly or has a tie-up with
Prashant K. Nanda
Labour minister Sis Ram Ola says besides workers, their families will also benefit from the increase. The government has expanded the number of people eligible for Employees’ State Insurance (ESI), which provides medical care to industrial workers and their dependents, by increasing the salary cap of beneficiaries to Rs25,000 from Rs15,000, ignoring opposition from employers.
The labour ministry’s move, which sceptics say is politically motivated as it comes in the run-up to a round of state elections and a national election next year, will directly benefit an additional 4.5 million industrial workers.
The revision in the ceiling means that all industrial workers who draw a salary of up to Rs.25,000 will benefit from medical and hospitalization facilities at more than 1,550 clinics and hospitals that the Employees’ State Insurance Corporation (ESIC) runs directly or has a tie-up with. Every month, eligible employees contribute 1.75% of their salary and employers contribute 4.75% to the ESI corpus.
“It will benefit millions of our industrial workers across India. Besides workers, it is their families who will also benefit from the increase in ceiling,” labour minister Sis Ram Ola said on Friday.
The decision was taken despite objections from employers’ representatives at a closed-door meeting in Delhi on Thursday.
“Several members opposed the move, but the labour minister advocated for it and passed the proposal,” said an internal note reviewed by Mint.
The last increase in the salary ceiling for ESI was made in May 2010, when it was raised to Rs.15,000 from Rs.10,000. Currently, around 15 million workers directly benefit from the employees’ insurance provisions, and after the revision, the total number of insured people will increase to 20 million. If one includes beneficiaries from the families of the insured workers, at least 65 million people, largely in urban areas, will benefit from the scheme.
While the government believes that the decision was made to widen the social security safety net, experts and an employers’ association said that the move was populist in nature, keeping in mind the impending Lok Sabha election next year and state assembly elections in states such as Delhi and Rajasthan this year. The labour minister belongs to Rajasthan.
“The ministry has taken a stand to increase the wage ceiling and it will benefit the people at the grass roots. With elections coming, the ruling party will benefit,” said G. Sanjeeva Reddy, president of Indian National Trade Union Congress, a national trade union associated with the Congress party.
Though the ESI clinics have a reputation for poor service and inadequate treatment, insured individuals are entitled to avail of facilities like outpatient treatment, specialized consultations, hospitalization and referral services in tertiary-care hospitals. They are entitled to get medicines, ambulance services and immunization schemes among other family welfare services.
“The ministry did not listen to the employers’ representatives properly in the meeting,” said Michael Dias, secretary of the Employers’ Association in Delhi. “The bigger picture is: primary treatment for which maximum number of workers go to ESI dispensaries is inadequate.”
Since people are not even getting satisfactory services now, increasing the pool of beneficiaries will only worsen the situation, he said.
From the corporate sector point of view, Dias said, the move would lead to labour unrest in companies and less salary. “Since the employers and employees will contribute to the ESI corpus, the take-home salary will be less for those who are now getting added to the ESI pool. A reduction in salary and poor medical service will lead to labour protests and industrial unrest,” Dias added.
When the ESI provisions were first introduced in 1952, the wage ceiling was Rs.400, Dias said. “It took 16 years to get revised to Rs.500; how come the labour ministry is increasing the ceiling by almost Rs.10,000 in just three years,” he asked.
Reddy, however, said that the increase in ESI ceiling will now influence the demand for increasing the minimum wage for getting covered under the employees’ provident fund (EPF).
The current ceiling for mandatory EPF deduction is Rs.6,500 and the demand is for making it at least Rs.10,000.
From India, Bangalore
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Dear All,
In a bid to widen the social security safety net, the Labour Minister, Mr. Sis Ram Ola, has announced that people drawing a salary up to Rs. 25,000 shall be covered under the ESI Scheme. Currently, the benefit is available to people drawing a salary up to Rs. 15,000 only. As per the information available, the decision was taken on Thursday, 19th September 2013. The last increase in the salary ceiling for ESI was made in May 2010 when it was raised to Rs. 15,000 from Rs. 10,000. The move would impact the take-home salary of the employees currently in the salary bracket of Rs. 15,000 to Rs. 25,000. Furthermore, it would have an impact on increasing the ESI contribution as well as compliance for the employers.
Let's get ready to increase the size of our ESI contribution list 🤔. It was published in the Vijayavani Newspaper in Karnataka on 22nd September 2013.
From India, Madras
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In a bid to widen the social security safety net, the Labour Minister, Mr. Sis Ram Ola, has announced that people drawing a salary up to Rs. 25,000 shall be covered under the ESI Scheme. Currently, the benefit is available to people drawing a salary up to Rs. 15,000 only. As per the information available, the decision was taken on Thursday, 19th September 2013. The last increase in the salary ceiling for ESI was made in May 2010 when it was raised to Rs. 15,000 from Rs. 10,000. The move would impact the take-home salary of the employees currently in the salary bracket of Rs. 15,000 to Rs. 25,000. Furthermore, it would have an impact on increasing the ESI contribution as well as compliance for the employers.
Let's get ready to increase the size of our ESI contribution list 🤔. It was published in the Vijayavani Newspaper in Karnataka on 22nd September 2013.
From India, Madras
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Dear All,
I too heard the same news floating around the corners. Just confirmed. It is said that the ESIC department is completely ready to take this forward but waiting for the final orders from authorities. They might get the orders soon. If it happens in October, then the increased limit of INR 25,000 will be applicable from Oct 2013 or else from Nov 2013. But the hike is too much, and it will also affect employees under the executive cadre and drawing 20+. Let's hope some changes happen to this or else get ready to increase the contribution. Is there any way out to avoid this?
Thanks!
From India, New Delhi
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I too heard the same news floating around the corners. Just confirmed. It is said that the ESIC department is completely ready to take this forward but waiting for the final orders from authorities. They might get the orders soon. If it happens in October, then the increased limit of INR 25,000 will be applicable from Oct 2013 or else from Nov 2013. But the hike is too much, and it will also affect employees under the executive cadre and drawing 20+. Let's hope some changes happen to this or else get ready to increase the contribution. Is there any way out to avoid this?
Thanks!
From India, New Delhi
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Dear All,
It has been circulating for some time that an increase in ESI limit was expected. Saunee has stated that the final approval is only awaited. However, on the other side, there is news circulating that a proposed hike in PF limit may be expected of up to 15,000/-. Can anyone share some info on that subject as well? As of now, no update is given on the bonus limit, if it is proposed to increase as well.
From India, Mumbai
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It has been circulating for some time that an increase in ESI limit was expected. Saunee has stated that the final approval is only awaited. However, on the other side, there is news circulating that a proposed hike in PF limit may be expected of up to 15,000/-. Can anyone share some info on that subject as well? As of now, no update is given on the bonus limit, if it is proposed to increase as well.
From India, Mumbai
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Today ESIC has increased Limit to Rs. 25000/- from Rs. 15000/-. Details are awaited. Pramod Thakar
From India, Pune
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From India, Pune
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Sir,
The news item as posted above is very old, and the wage limit has not been enhanced under ESI (Central) Rules, 1952 so far. It would be better to seek confirmation from the appropriate office of ESIC instead of sharing such old news items in this discussion.
Thank you.
From India, Noida
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The news item as posted above is very old, and the wage limit has not been enhanced under ESI (Central) Rules, 1952 so far. It would be better to seek confirmation from the appropriate office of ESIC instead of sharing such old news items in this discussion.
Thank you.
From India, Noida
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ESIC Notification for Increase Limit 21000.pdf