The government has decided to increase the salary limit for coverage of ESI from Rs. 15,000 to Rs. 25,000. The date of effect is not known. Please share if anybody has the relevant notification from the ESIC.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
The source of this information regarding the ESIC limit to Rs 25,000 is the news published on the front page of a Malayalam newspaper "Mathrubhumi" and on Hindi Patrika dated 20th September 2013. I am attaching the source of this news. Please confirm the source of this news.
Regards,
Dinesh
From India, New Delhi
Regards,
Dinesh
From India, New Delhi
Dear All. Kindly find attached press note This is not yet implemented, we should wait for Gazette, but it will happen in near future. Thanks Umesh Kadam 9223820620
From India, Mumbai
From India, Mumbai
Dear All, Please let me know that should we calcualate ESIC on earned gross or actual gross.? Also PF from Earned basic or actual basic?
From India, Vijayawada
From India, Vijayawada
Hi,
This is in regards to your query for ESIC calculations. ESIC always calculates based on Gross Earnings. There is a fixed rate for the same, i.e., 1.75% for Employee Share and 4.75% for Employer Share of the gross earnings.
PF is deducted based on the actual earnings.
Regards,
Vikas Sharma
From India, Chandigarh
This is in regards to your query for ESIC calculations. ESIC always calculates based on Gross Earnings. There is a fixed rate for the same, i.e., 1.75% for Employee Share and 4.75% for Employer Share of the gross earnings.
PF is deducted based on the actual earnings.
Regards,
Vikas Sharma
From India, Chandigarh
Dear Sir,
As per the available information, the decision was made on September 19, 2013, and was announced by the Labour Minister. However, a notification or circular in this regard is awaited.
Thanks & Regards,
Avika
From India, New Delhi
As per the available information, the decision was made on September 19, 2013, and was announced by the Labour Minister. However, a notification or circular in this regard is awaited.
Thanks & Regards,
Avika
From India, New Delhi
Hi everybody,
Do you mean that according to this information, the calculation of ESIC will depend on that, and we have to calculate ESIC (1.75%) for those employees whose salary is below 25000? Am I right? Please confirm.
From India, Delhi
Do you mean that according to this information, the calculation of ESIC will depend on that, and we have to calculate ESIC (1.75%) for those employees whose salary is below 25000? Am I right? Please confirm.
From India, Delhi
Dear Madhu Sir, The date of effect of the amendment will be given in the Gazette notification. Let’s wait for the notification.
From India, Madras
From India, Madras
Hi Madhu, It has been decided by the government of India to increase the ESI Qualififying limit salary to Rs.25,000 but till now they have not decided the date from which it will be effective.
From India, Bangalore
From India, Bangalore
Date 22/09/2013
Respected Sir.
We refer the News of ESIC amendment in slab which was raised to a maximum slab of Rs. 15000 instead of earlier Rs. 10000 from 01.05.2010.
In this context I would like to have a suggestion to you to increase the PF slab also as the current PF slab is Rs. 6500 since long. Now due to the global financial situation it is very necessary to amend this slab because at the time of retirement at the age of 58 employee working in a private sector will get very nominal amount. It will be very hard for a person to run his family with PF amount and pension amount what he will get as per the current slab
As you are aware inflation rates are in upward trend and rates of all the necessary items has increased steeply. How can an average middle class Indian can fulfill his basic requirements from above PF amount when he retires.
I think government should change the policy and take some more effective actions keeping in mind long time inflation rate. You can understand the critical position of a person retiring at the age of 58 especially private sector employees.
Government should think about middle class family. “Poor are becoming poor day by day”
Expecting some amendments in PF slab.
From India, Vadodara
Respected Sir.
We refer the News of ESIC amendment in slab which was raised to a maximum slab of Rs. 15000 instead of earlier Rs. 10000 from 01.05.2010.
In this context I would like to have a suggestion to you to increase the PF slab also as the current PF slab is Rs. 6500 since long. Now due to the global financial situation it is very necessary to amend this slab because at the time of retirement at the age of 58 employee working in a private sector will get very nominal amount. It will be very hard for a person to run his family with PF amount and pension amount what he will get as per the current slab
As you are aware inflation rates are in upward trend and rates of all the necessary items has increased steeply. How can an average middle class Indian can fulfill his basic requirements from above PF amount when he retires.
I think government should change the policy and take some more effective actions keeping in mind long time inflation rate. You can understand the critical position of a person retiring at the age of 58 especially private sector employees.
Government should think about middle class family. “Poor are becoming poor day by day”
Expecting some amendments in PF slab.
From India, Vadodara
Please read the statement below from the press release of the Labor Department. Don't panic and confuse.
Under the ESI Act, 1948, employees drawing wages up to Rs. 15,000 per month are eligible to avail ESI facilities subject to the applicable contributory conditions. The ceiling of wages for persons with disabilities is Rs. 25,000 per month. There is no minimum wage limit for availing ESI facilities.
This information was given by Minister of State for Labour & Employment, Shri Kodikunnil Suresh, in the Lok Sabha today in reply to a written question.
Quote: [Press Information Bureau English Releases](http://www.pib.nic.in/newsite/erelease.aspx?relid=0)
From India, Hyderabad
Under the ESI Act, 1948, employees drawing wages up to Rs. 15,000 per month are eligible to avail ESI facilities subject to the applicable contributory conditions. The ceiling of wages for persons with disabilities is Rs. 25,000 per month. There is no minimum wage limit for availing ESI facilities.
This information was given by Minister of State for Labour & Employment, Shri Kodikunnil Suresh, in the Lok Sabha today in reply to a written question.
Quote: [Press Information Bureau English Releases](http://www.pib.nic.in/newsite/erelease.aspx?relid=0)
From India, Hyderabad
Dear,
I am attaching an article related to this thread that might be of some help. It states that the ESIC limit shall be increased, although the exact date of its effect is not yet known. I am waiting for the gazette to get approved.
Regards,
A A Satia
From India, Bombay
I am attaching an article related to this thread that might be of some help. It states that the ESIC limit shall be increased, although the exact date of its effect is not yet known. I am waiting for the gazette to get approved.
Regards,
A A Satia
From India, Bombay
Friends,
Further to Mr. Vikas Sharma's query as above, I have another question as under:
Suppose I am drawing a gross salary of Rs. 23,500/- p.m., and due to the proposed rise in ESI ceiling to Rs. 25,000/-, I will be covered by ESI. I shall have to pay 1.75% as my contribution, and my employer's liability to my ESI contribution will be 4.75% of my gross salary.
Now, suppose I am under the CTC pay method in a company, do I have to pay the entire 6.5% of the ESI contribution from my pocket only? Is the employer not responsible for paying their part of the contribution at 4.75%? People say (also refer to the Press Note of Livermint News) that in the case of the CTC system, the take-home salary of the employee will reduce by 6.5% if they are covered under ESI for the first time. How does all of this work?
Can any of you, friends, explain and enlighten me on the facts?
Thanks and regards,
Janak Soni
From India, Surat
Further to Mr. Vikas Sharma's query as above, I have another question as under:
Suppose I am drawing a gross salary of Rs. 23,500/- p.m., and due to the proposed rise in ESI ceiling to Rs. 25,000/-, I will be covered by ESI. I shall have to pay 1.75% as my contribution, and my employer's liability to my ESI contribution will be 4.75% of my gross salary.
Now, suppose I am under the CTC pay method in a company, do I have to pay the entire 6.5% of the ESI contribution from my pocket only? Is the employer not responsible for paying their part of the contribution at 4.75%? People say (also refer to the Press Note of Livermint News) that in the case of the CTC system, the take-home salary of the employee will reduce by 6.5% if they are covered under ESI for the first time. How does all of this work?
Can any of you, friends, explain and enlighten me on the facts?
Thanks and regards,
Janak Soni
From India, Surat
Is there any circular from the ESIC office or any effective date or its proposal only????????
From India, Mumbai
From India, Mumbai
There is no system of payment like CTC, but it is a practice by employers (especially new generation companies) to show the total pay obligation or cost to company by adding up all the contributions, charges, etc., that the company should bear in addition to salary. Whatever the system, you are liable to pay only 1.75% of your gross salary. For example, if it is ₹23,500, then it would be ₹412, and if it is ₹25,000, then it would be ₹438. Here, gross pay is just the monthly fixed salary without considering incentives and such allowances which are paid at intervals of more than two months. It also does not include any contributions by the employer towards PF, gratuity, or bonus. This means that the salary for the purpose of coverage and payment of ESI is very strictly the fixed portion of the salary or the gross salary without reference to the cost to the company (CTC). An employer can show their cost to the company by adding up 4.75% of the gross, which they contribute towards ESI but cannot make the employee bear it.
Though I have explained all of the above, I believe that many companies, which calculate the salary based on a total sum as CTC and then break it down by different names depending on its significance in present contributions (like PF, bonus) or future payments like gratuity, will need to reevaluate based on the new amendment so that they do not suffer economically.
Regards,
Madhu.T.K
From India, Kannur
Though I have explained all of the above, I believe that many companies, which calculate the salary based on a total sum as CTC and then break it down by different names depending on its significance in present contributions (like PF, bonus) or future payments like gratuity, will need to reevaluate based on the new amendment so that they do not suffer economically.
Regards,
Madhu.T.K
From India, Kannur
Thanks Madhu for sharing important update. I have dealt with ESI Office . So it indicates that there will be changes in PF percentage and slab too in near future.
From India, Delhi
From India, Delhi
Dear all,
I work for a BPO with an employee count of 40. Please let me know if the BPO sector also needs to provide ESI. In the discussion on this thread, it is mentioned that an employee drawing less than Rs. 15,000 per month is eligible for ESI. Is this amount gross or net salary?
Regards,
Megha
From India, Maisuru
I work for a BPO with an employee count of 40. Please let me know if the BPO sector also needs to provide ESI. In the discussion on this thread, it is mentioned that an employee drawing less than Rs. 15,000 per month is eligible for ESI. Is this amount gross or net salary?
Regards,
Megha
From India, Maisuru
Dear Megha, In calculation of ESIC, only washing allowance is excluded. Other all allowances are covered in this 15000/- figure.
From India, Surat
From India, Surat
Hi Members, Hope all are doing good ! As per discussion with ESIC Branch Manager, Limit has been increased but Notification is not released till now .It can be effective from 1 october 2013. Jagdish
From India, Delhi
From India, Delhi
Dear Madhu, Please let us know when it is being implimented. Regards, S.Balaji Rao.
From India, Madras
From India, Madras
Dear JRawat, Then the Salary paid for the month of oct -2013 in Nov -2013 then all below Rs.25000.00 salary will be covered ESIC., Iam i correct. Regards, S.Balaji Rao
From India, Madras
From India, Madras
This has been proposed to Cabinet. Cabinet needs to discuss and approve. After Cabinet approval, there will be a notification followed by gazetting for the effective date. Until then, the limit stands at the present level of 15000 per month.
For information.
B. Sundararaman
From India, Madras
For information.
B. Sundararaman
From India, Madras
anyone have official website/link address for this updated news?? If yes than please share.. I want to share with my management team.
From India, Surat
From India, Surat
Deal All, With regard to ESI salary limit , what update for Gujarat state???? Regards, Dharmesh Sartanpara HR-Executive
From India, Surat
From India, Surat
Dear All, With regards to ESI Salary Limit, What update for Gujarat state???? Regards, Dharmesh Sartanpara HR-Executive
From India, Surat
From India, Surat
Dear All, The news published in news paper "Rajasthan Patrika" on dated 20-09-2013 about increase ESIC limit 15000 to 25000, News is attached for your future reference. Rgrds, Kuldeep Yadav
From India, Delhi
From India, Delhi
Dear All, Please share the notification for hike in ESIC Ceiling Limit from 15,000/- to 25,000/- Regards, Sanjeev
From India, Kolkata
From India, Kolkata
Can my mother be dependent on me for medical purpose if my father is earning more than limit but not she is not staying with him, and also not dependent on him
From India, Delhi
From India, Delhi
Unless legally separated, she is supposed to be a dependent of her husband (your father). Since her husband is earning more than Rs 5000 per month by way of income (not necessarily salary income but from any other sources as declared in the income card issued by the government, such as a ration card or any other card issued by the Public Distribution System), your mother cannot avail medical benefits under your ESI registration.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Our company is a medical transcription company, and we are implementing all these PF/ESI, etc., things. In the transcription industry, incentives are paid based on productivity, which can vary every month. For example, if an employee has a fixed salary of 25K or less, they will be eligible for ESI. However, if they receive incentives totaling around 5-10K every month, increasing their gross salary to 30-35K, would they still be eligible for ESI?
From India, Chennai
From India, Chennai
If this incentive, like any other allowance or benefit, is normally paid every month, then it can be part of salary for the purpose of eligibility for coverage as well as contribution. However, if it is paid separately and at an interval of more than two months, it will not form part of the salary. Similarly, if the incentive is paid to all employees on a monthly basis, then it shall be considered as part of the salary. Once an employee is covered, they will remain covered until the end of the contribution period, regardless of any changes in the incentive structure. The key factor to consider is whether the incentive accrues every month; if it does, it should be treated as part of the salary paid.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Dear All,
Please find attached the press note of today's Sakal newspaper (Pune Edition, in Marathi language) confirming that the ESIC limit has been increased from Rs. 15,000 to Rs. 25,000.
Regards,
Vinay Bonde
From India, Pune
Please find attached the press note of today's Sakal newspaper (Pune Edition, in Marathi language) confirming that the ESIC limit has been increased from Rs. 15,000 to Rs. 25,000.
Regards,
Vinay Bonde
From India, Pune
Hi, Establishment which is employing 20 or more ESI is applicable. ESI coverage should be on Gross Salary............
From India, Bangalore
From India, Bangalore
I think this decision is taken by the ruling party independently, taking into consideration the upcoming election and avoiding employers' opinions. Most of the employees, whose gross salary is above Rs. 15,000, are also feeling very bad about this decision.
Suddenly increasing the slab from Rs. 15,000 to Rs. 25,000 is a very bad decision. If it is finalized between Rs. 18,000 to Rs. 20,000, then it's okay, but Rs. 25,000 is too much.
From India, Mumbai
Suddenly increasing the slab from Rs. 15,000 to Rs. 25,000 is a very bad decision. If it is finalized between Rs. 18,000 to Rs. 20,000, then it's okay, but Rs. 25,000 is too much.
From India, Mumbai
Owing to protests from employers, the matter seems to be on hold. However, I have a different opinion about the scheme. I think ESI is the only scheme that takes care of existing/preexisting diseases and elderly people regardless of their age. When an employee is enrolled, they receive treatment and benefits even if the disease already exists at the time of enrollment. Moreover, which medical coverage provides benefits to parents aged above 70 or 80? Additionally, there are no hidden terms, and everything is transparent. Subject to certain contribution conditions, super specialty treatment is also available.
From the employers' perspective, a contribution of 4.5% on a salary of, for example, Rs 25,000 per month may seem significant. However, when we calculate the alternative costs, such as premiums to cover hospitalization and medical care for employees, their spouses, children, and parents (without age restrictions), along with leave due to hospitalization (which can extend up to 90 days under ESI), accident benefits, maternity benefits, funeral benefits, and other benefits, ESI proves to be more cost-effective than any medical policy.
The primary issue is not the payments to the ESI Corporation but the operational efficiency of the Corporation. Employees often have to utilize outdated facilities and wait for officers/bureaucrats. Moreover, there is misuse of facilities by unethical employees who obtain ESI leave by influencing or bribing medical officers. Improvements are needed to prevent misuse or to enhance the effectiveness of Section 91B of the ESI Act to curb such abuses.
Madhu.T.K
From India, Kannur
From the employers' perspective, a contribution of 4.5% on a salary of, for example, Rs 25,000 per month may seem significant. However, when we calculate the alternative costs, such as premiums to cover hospitalization and medical care for employees, their spouses, children, and parents (without age restrictions), along with leave due to hospitalization (which can extend up to 90 days under ESI), accident benefits, maternity benefits, funeral benefits, and other benefits, ESI proves to be more cost-effective than any medical policy.
The primary issue is not the payments to the ESI Corporation but the operational efficiency of the Corporation. Employees often have to utilize outdated facilities and wait for officers/bureaucrats. Moreover, there is misuse of facilities by unethical employees who obtain ESI leave by influencing or bribing medical officers. Improvements are needed to prevent misuse or to enhance the effectiveness of Section 91B of the ESI Act to curb such abuses.
Madhu.T.K
From India, Kannur
Dear Sirs,
Notification by the appropriate government to amend Rule 50 of the ESI (Central) Rules, 1952, to enhance the wage ceiling under the ESI Act, 1948, has not been issued so far. The issue time and again appears on this site due to news published in newspapers, etc.
Thank you.
From India, Noida
Notification by the appropriate government to amend Rule 50 of the ESI (Central) Rules, 1952, to enhance the wage ceiling under the ESI Act, 1948, has not been issued so far. The issue time and again appears on this site due to news published in newspapers, etc.
Thank you.
From India, Noida
To All company having 30 employees, all are above 25000/- salary, is mandatory to register ESI & PF?. If yes please provide notification copy Regards SatishChandra
From India, Bangalore
From India, Bangalore
This is in the news again. Is the Gazette notification out regarding an increase in the limit? If so, how is a company with more than 20 employees defined? Is this a company with all its branches included, or is it per branch? Who can provide answers?
From India, Thrissur
From India, Thrissur
Yes. The ceiling is now raised from Rs.15000 to Rs.21000.00 News have also come in leading news papers 1-2 days back. Thanks. P Radhakrishnan Nair
From India, Aizawl
From India, Aizawl
The Government has decided to increase the salary limit for coverage of ESI from Rs 15000 to Rs 25000. wef 01.10.2016
From India, Chennai
From India, Chennai
As per the PF website, there is an increase in the wage limit. The coverage for the Employee's State Insurance Corporation, Ministry of Labour & Employment, Government of India, is Rs. 15,000 per month (w.e.f. 01/05/2010) only.
From India, Hyderabad
From India, Hyderabad
Financial Express has the proper details. Published on 7th September. They have mentioned wef 1st october 2016
From India, Bengaluru
From India, Bengaluru
Sir, such proposals are published in newspapers regularly, and I have been noticing the same for about 2 years. Until the appropriate government (MOL & E, Central Govt) issues an intention notification under the relevant ESI (Central) Rules, we cannot definitively say that there is a proposal at the level of authorities. The present government appears to be focused more on publicity rather than actually implementing provisions of the law. An intention notification has not been issued so far, and it typically takes at least a month to publish the final notification after the intention gazette notification is released.
From India, Noida
From India, Noida
Please send a notification from esic or any govt notification for esi limit rs. 25000 thanks
From India, Jamshedpur
From India, Jamshedpur
1. Sir, please see another thread on a similar subject. The online link is mentioned as follows: https://www.citehr.com/572689-can-yo...limit-pg2.html
2. I understand that the appropriate government has not yet issued a final notification regarding the enhancement of the wage ceiling under the ESI Act, 1948. I think this issue may be actively under consideration by the appropriate government.
From India, Noida
2. I understand that the appropriate government has not yet issued a final notification regarding the enhancement of the wage ceiling under the ESI Act, 1948. I think this issue may be actively under consideration by the appropriate government.
From India, Noida
Hi All, Has anybody got the gazette of ESI raising wages upto 21,000/- ? I am asking again because, there were people saying the notification may be released on 5th november. Any updates on this???
From India, Bengaluru
From India, Bengaluru
If any employee having gross salary 35000 and want to deduct ESI then what will be maximum amount to be deducted from and % will be calculated on which amount?
From India, Chandannagar
From India, Chandannagar
Sir, compliance under the ESI Act, 1948, and rules/regulations framed thereunder is compulsory and not optional. The present coverable limit of wages is only Rs. 21,000/- per month (excluding OT). Therefore, persons receiving wages of Rs. 35,000/- per month (excluding overtime) are not covered and do not have that option.
From India, Noida
From India, Noida
i want notification / circular , not in mews papers, because news in news papers not solve our problems
From India, Jamshedpur
From India, Jamshedpur
We all rely on notifications only, and whatever Harsh Kumar has said is not an extract from the newspaper but from the Act only. We have posted the notification on this site many times, and you can very well take it from the site.
Please note that Mr. Harsh is a member who has had a long and very meritorious service in the ESI Corporation at a senior level. Therefore, he knows more than others in this forum. When you make comments, please be more professional. Sometimes your style of writing, like "I want notification.....and newspaper will not solve our problems," etc., is not at all professional.
Madhu.T.K
From India, Kannur
Please note that Mr. Harsh is a member who has had a long and very meritorious service in the ESI Corporation at a senior level. Therefore, he knows more than others in this forum. When you make comments, please be more professional. Sometimes your style of writing, like "I want notification.....and newspaper will not solve our problems," etc., is not at all professional.
Madhu.T.K
From India, Kannur
Visit www.simpliance.in to download the latest notification and amendments.
---
Dear user,
Please visit www.simpliance.in to download the latest notifications and amendments.
Thank you.
From India, Bengaluru
---
Dear user,
Please visit www.simpliance.in to download the latest notifications and amendments.
Thank you.
From India, Bengaluru
Go through the Act which is final. Employees drawing upto Rs 21000/- p.m. are covered under the Act and it is effective w.e.f.01.01.2017.
From India, Kalyan
From India, Kalyan
Dear Mr. Pathak,
Please make reading newspapers a regular habit. Furthermore, all government (state and central) schemes, laws, amendments, proposals, etc., trickle down to all citizens through print and visual media. Even before notifications are released, the same would have been published by newspapers.
From India, New Delhi
Please make reading newspapers a regular habit. Furthermore, all government (state and central) schemes, laws, amendments, proposals, etc., trickle down to all citizens through print and visual media. Even before notifications are released, the same would have been published by newspapers.
From India, New Delhi
Dear All,
The limit proposed in 2013 by the UPA Government, the NDA Government reduced and implemented it as Rs. 21,000/- per month with effect from 01.01.2017 only. Any immediate revision will affect the working class in private sectors. Hence, please do not get confused with old news.
V. Murali
From India, Madipakkam
The limit proposed in 2013 by the UPA Government, the NDA Government reduced and implemented it as Rs. 21,000/- per month with effect from 01.01.2017 only. Any immediate revision will affect the working class in private sectors. Hence, please do not get confused with old news.
V. Murali
From India, Madipakkam
There is no scope for any confusion if you follow the threads in full. It was opened on 20th September 2013, i.e., 4 years ago when the Congress-led government was in power. I posted it following a press release, and we had a lot of discussions on the same. However, when the BJP-led government came into power, this decision was put on hold. This information was also shared with the members on 1st March 2014 (please refer to post No. 38). When the decision to set it at Rs 21,000 came, that information was also provided. It is true that anyone who only reads the headline may get confused, but that is expected. To understand the complete picture of the post, one should read the comments one by one.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Mr. Madhu.T.K,
I feel you reposted what I said and were offended by my use of the word "confusion." I do not see any reason for this. Sir, I used the word "confusion" because the issue from 2013 persists into 2017 even after the implementation of the revised wages limit. If you feel that I have hurt you, I apologize. However, the fact remains as I mentioned, and the posts made by you are on the same page but with different wording. I also read post number 38 made in 2013 and thank you. Keep in touch and good going.
Remain,
V. MURALI
From India, Madipakkam
I feel you reposted what I said and were offended by my use of the word "confusion." I do not see any reason for this. Sir, I used the word "confusion" because the issue from 2013 persists into 2017 even after the implementation of the revised wages limit. If you feel that I have hurt you, I apologize. However, the fact remains as I mentioned, and the posts made by you are on the same page but with different wording. I also read post number 38 made in 2013 and thank you. Keep in touch and good going.
Remain,
V. MURALI
From India, Madipakkam
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