Dear Seniors,
Greetings for the day,
In my company, one employee is out of the salary limit of ESIC Coverage, but he wants to continue his ESI benefits and contribution. He is a Sr. Electrician working in our company, and his working profile also requires these types of benefits. The company is interested in continuing him in ESIC. Is it possible to keep a person in ESIC after he is out of coverage from ESIC due to his salary? If yes, then as an HR professional, what are the formalities and procedures I have to complete to keep him in ESIC?
Thank you.
Warm Regards,
Deepak Agarwal
From India
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9Greetings for the day,
In my company, one employee is out of the salary limit of ESIC Coverage, but he wants to continue his ESI benefits and contribution. He is a Sr. Electrician working in our company, and his working profile also requires these types of benefits. The company is interested in continuing him in ESIC. Is it possible to keep a person in ESIC after he is out of coverage from ESIC due to his salary? If yes, then as an HR professional, what are the formalities and procedures I have to complete to keep him in ESIC?
Thank you.
Warm Regards,
Deepak Agarwal
From India
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It is not possible to cover a person under ESI if his salary crosses the limit. Once an employee is out of ESI, they get covered under the Employees' Compensation Act, and you can take out an insurance policy. For other medical needs, organizations take up medical insurance with limits.
Please remember, the ESI Act does not provide for any voluntary inclusions.
From India, Chennai
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Please remember, the ESI Act does not provide for any voluntary inclusions.
From India, Chennai
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ESIC is purely for social security purposes. The workers or employees who are receiving minimum wages and other allowances up to ₹15,000 are benefited. If any worker is earning more than 15k, it means he/she is capable of bearing the medical uncertainty, and he/she can benefit from other medical benefits provided by the company.
Yogesh Kanahalli
From India, Bangalore
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Yogesh Kanahalli
From India, Bangalore
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Dear Agarwal,
In accordance with the ESI Act, it will not be possible for you to keep the electrician (employee) covered under the ESI scheme since his salary exceeded Rs. 15,000 per month.
Regards, Sibabrata Majumdar Management Consultant Legal & HR Kolkata, 9830023706
From India, Calcutta
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In accordance with the ESI Act, it will not be possible for you to keep the electrician (employee) covered under the ESI scheme since his salary exceeded Rs. 15,000 per month.
Regards, Sibabrata Majumdar Management Consultant Legal & HR Kolkata, 9830023706
From India, Calcutta
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Dear Friend,
As our friends have mentioned, it may not be possible to continue after reaching the wage limit. However, there is no need to worry. The ESI Corporation is planning to increase the wage limit from 15k to 25k, effective from 1st April 2014. If this change is implemented, your problem will be resolved.
Regards,
Alphonse
From India, Madras
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As our friends have mentioned, it may not be possible to continue after reaching the wage limit. However, there is no need to worry. The ESI Corporation is planning to increase the wage limit from 15k to 25k, effective from 1st April 2014. If this change is implemented, your problem will be resolved.
Regards,
Alphonse
From India, Madras
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Dear Friend,
If the wages limit is increased to 25K per month, the problem being faced by my friend will be solved without saying. But at the moment, his problem will remain unsolved. Let us wait for the issue of notification by ESIC regarding the implementation of the amended law.
I understand after interaction with a few employers that they are not at all happy if the wages ceiling is enhanced, which is under consideration. In the competitive era, it will be difficult for small/medium industries to survive as this will be one of the factors leading to an increase in manufacturing cost and/or service cost. However, all depends on Government Policy.
Regards,
Sibabrata Majumdar
Management Consultant Legal & HR
Kolkata, Mb: 9830023706
From India, Calcutta
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If the wages limit is increased to 25K per month, the problem being faced by my friend will be solved without saying. But at the moment, his problem will remain unsolved. Let us wait for the issue of notification by ESIC regarding the implementation of the amended law.
I understand after interaction with a few employers that they are not at all happy if the wages ceiling is enhanced, which is under consideration. In the competitive era, it will be difficult for small/medium industries to survive as this will be one of the factors leading to an increase in manufacturing cost and/or service cost. However, all depends on Government Policy.
Regards,
Sibabrata Majumdar
Management Consultant Legal & HR
Kolkata, Mb: 9830023706
From India, Calcutta
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Dear Sir,
Two or three employees in our organization crossed the salary for ESI Limit of Rs. 15,000 during April 2014. However, in the ESI Portal, it is not mentioned that they are out of coverage. What remarks should we make regarding this situation? Please advise on the reason we should mention for not deducting and depositing ESI further.
Your guidance on this matter would be greatly appreciated.
Regards,
R K GOEL
Indfos
9871387739
From India, New Delhi
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Two or three employees in our organization crossed the salary for ESI Limit of Rs. 15,000 during April 2014. However, in the ESI Portal, it is not mentioned that they are out of coverage. What remarks should we make regarding this situation? Please advise on the reason we should mention for not deducting and depositing ESI further.
Your guidance on this matter would be greatly appreciated.
Regards,
R K GOEL
Indfos
9871387739
From India, New Delhi
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In a meeting held yesterday, the ESIC board also decided to give an option to existing insured persons to continue membership even if their wage breaches the ceiling of Rs 21,000 per month.
At present, all those insured under the ESIC scheme lose their membership of ESIC as well as that of the insurance cover if their wage overshoots the ceiling. "ESIC has raised the threshold wage limit from Rs 15,000 to Rs 21,000," Labour Minister told PTI after the board meeting of ESIC here. The Labour Minister is the Chairman of the ESIC Board.
From India, Hyderabad
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At present, all those insured under the ESIC scheme lose their membership of ESIC as well as that of the insurance cover if their wage overshoots the ceiling. "ESIC has raised the threshold wage limit from Rs 15,000 to Rs 21,000," Labour Minister told PTI after the board meeting of ESIC here. The Labour Minister is the Chairman of the ESIC Board.
From India, Hyderabad
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