ESIC Raises Wage Threshold for Health Insurance Coverage
The Employees' State Insurance Corporation (ESIC) today raised the monthly wage threshold to Rs 21,000 from the current Rs 15,000 for coverage under its health insurance scheme. In a meeting held today, 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 Bandaru Dattatreya told PTI after the board meeting of ESIC here. The Labour Minister is the Chairman of the ESIC Board. Both decisions will be implemented from October 1. Dattatreya added that the move of raising the threshold will help bring in an additional 50 lakh members to ESIC. At present, ESIC has 2.6 crore insured persons, which covers over 10 crore people, assuming four members of a family.
Future Plans for EPFO Wage Threshold
The minister also said there is a plan to increase the wage threshold for retirement fund body EPFO subscribers and it may be considered in the next meeting of the Central Board of Trustees (CBT). At present, the wage threshold is Rs 15,000 per month for coverage under its social security scheme.
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From India, Mumbai
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2584The Employees' State Insurance Corporation (ESIC) today raised the monthly wage threshold to Rs 21,000 from the current Rs 15,000 for coverage under its health insurance scheme. In a meeting held today, 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 Bandaru Dattatreya told PTI after the board meeting of ESIC here. The Labour Minister is the Chairman of the ESIC Board. Both decisions will be implemented from October 1. Dattatreya added that the move of raising the threshold will help bring in an additional 50 lakh members to ESIC. At present, ESIC has 2.6 crore insured persons, which covers over 10 crore people, assuming four members of a family.
Future Plans for EPFO Wage Threshold
The minister also said there is a plan to increase the wage threshold for retirement fund body EPFO subscribers and it may be considered in the next meeting of the Central Board of Trustees (CBT). At present, the wage threshold is Rs 15,000 per month for coverage under its social security scheme.
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From India, Mumbai
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ESIC Raises Monthly Wage Threshold to Rs 21,000
Aiming to make its health insurance more inclusive, the Employees' State Insurance Corporation (ESIC) today decided to raise the monthly wage threshold to Rs 21,000 in view of price rise and salary hike.
Raising the wage ceiling from the existing Rs 15,000 per month will help ESIC add 50 lakh workers. The move is expected to bring in 2 crore people—assuming a family of 4—under the health insurance net. Currently, it has 2.6 crore insured workers and covers over 10 crore people.
Recently, the government hiked the minimum wage for unskilled non-farm workers by 42 percent to Rs 350 per day, from the existing Rs 246. ESIC raised its wage ceiling by 40 percent, considering the increase in minimum wages by the government.
ESIC has not only increased the wage limit but allowed insured persons to opt for continuing the cover even if their salary breaches the ceiling. The decisions will come into effect from October 1.
"ESIC has raised the threshold wage limit from Rs 15,000 to Rs 21,000," Labour Minister Bandaru Dattatreya told PTI after the board meeting of ESIC here. The labour minister is the chairman of the ESIC board.
Now, workers drawing a monthly salary of up to Rs 21,000 will be entitled to treatment during cases of sickness, maternity, disability, and death due to injury during work. At the ESIC board meeting, the organization had proposed raising the limit to Rs 25,000 per month, but it was decided to fix the ceiling at Rs 21,000.
Earlier, a Parliamentary Standing Committee on Labour took the line that the wage limit should be raised in line with the rise in prices and salaries. An employer has to contribute 4.75 percent of a worker's salary towards ESIC as a contribution while for workers, it stands at 1.75 percent.
The minister also said there is a plan to increase the wage threshold for the retirement fund body EPFO subscribers, and it may be considered in the next meeting of the Central Board of Trustees (CBT).
Launch of Telemedicine Services
Dattatreya also launched the first phase of telemedicine services whereby ESIC Model Hospital, Basaidarapur, New Delhi, got connected with three ESI dispensaries at Rudrapur (Uttarakhand), Unnao (Uttar Pradesh), and Kathiyar (Bihar). Under these new initiatives, ESIC has launched a pilot project of telemedicine services at 11 ESI locations in coordination with the Health Informatics and Electronics Division (HIED), C-DAC, Mohali, under the Digital India program. The launch of these services will lead to the provision of specialized healthcare services to ESIC beneficiaries residing or working at different locations with limited medical specialist services.
From India, Delhi
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Aiming to make its health insurance more inclusive, the Employees' State Insurance Corporation (ESIC) today decided to raise the monthly wage threshold to Rs 21,000 in view of price rise and salary hike.
Raising the wage ceiling from the existing Rs 15,000 per month will help ESIC add 50 lakh workers. The move is expected to bring in 2 crore people—assuming a family of 4—under the health insurance net. Currently, it has 2.6 crore insured workers and covers over 10 crore people.
Recently, the government hiked the minimum wage for unskilled non-farm workers by 42 percent to Rs 350 per day, from the existing Rs 246. ESIC raised its wage ceiling by 40 percent, considering the increase in minimum wages by the government.
ESIC has not only increased the wage limit but allowed insured persons to opt for continuing the cover even if their salary breaches the ceiling. The decisions will come into effect from October 1.
"ESIC has raised the threshold wage limit from Rs 15,000 to Rs 21,000," Labour Minister Bandaru Dattatreya told PTI after the board meeting of ESIC here. The labour minister is the chairman of the ESIC board.
Now, workers drawing a monthly salary of up to Rs 21,000 will be entitled to treatment during cases of sickness, maternity, disability, and death due to injury during work. At the ESIC board meeting, the organization had proposed raising the limit to Rs 25,000 per month, but it was decided to fix the ceiling at Rs 21,000.
Earlier, a Parliamentary Standing Committee on Labour took the line that the wage limit should be raised in line with the rise in prices and salaries. An employer has to contribute 4.75 percent of a worker's salary towards ESIC as a contribution while for workers, it stands at 1.75 percent.
The minister also said there is a plan to increase the wage threshold for the retirement fund body EPFO subscribers, and it may be considered in the next meeting of the Central Board of Trustees (CBT).
Launch of Telemedicine Services
Dattatreya also launched the first phase of telemedicine services whereby ESIC Model Hospital, Basaidarapur, New Delhi, got connected with three ESI dispensaries at Rudrapur (Uttarakhand), Unnao (Uttar Pradesh), and Kathiyar (Bihar). Under these new initiatives, ESIC has launched a pilot project of telemedicine services at 11 ESI locations in coordination with the Health Informatics and Electronics Division (HIED), C-DAC, Mohali, under the Digital India program. The launch of these services will lead to the provision of specialized healthcare services to ESIC beneficiaries residing or working at different locations with limited medical specialist services.
From India, Delhi
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ESIC Wage Threshold Increase
Please be informed that the ESIC has raised the wage threshold to Rs. 21,000 with effect from 01.10.2016.
The Employees' State Insurance Corporation (ESIC) today raised the monthly wage threshold to Rs. 21,000, from the current Rs. 15,000, for coverage under its health insurance scheme.
In a meeting held today, the ESIC board also decided to give an option to existing insured persons to continue membership even if their wage exceeds 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 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 Bandaru Dattatreya told PTI after the board meeting of ESIC here. The Labour Minister is the Chairman of the ESIC Board.
Both decisions will be implemented from October 1. Dattatreya added that the move of raising the threshold will help bring in an additional 50 lakh members to ESIC. At present, ESIC has 2.6 crore insured persons, which cover over 10 crore people, assuming four members of a family.
The minister also said there is a plan to increase the wage threshold for retirement fund body EPFO subscribers, and it may be considered at the next meeting of the Central Board of Trustees (CBT). At present, the wage threshold is Rs. 15,000 per month for coverage under its social security scheme.
Only after the Gazette notification is released will this law come into effect.
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From India, Kolkata
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Please be informed that the ESIC has raised the wage threshold to Rs. 21,000 with effect from 01.10.2016.
The Employees' State Insurance Corporation (ESIC) today raised the monthly wage threshold to Rs. 21,000, from the current Rs. 15,000, for coverage under its health insurance scheme.
In a meeting held today, the ESIC board also decided to give an option to existing insured persons to continue membership even if their wage exceeds 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 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 Bandaru Dattatreya told PTI after the board meeting of ESIC here. The Labour Minister is the Chairman of the ESIC Board.
Both decisions will be implemented from October 1. Dattatreya added that the move of raising the threshold will help bring in an additional 50 lakh members to ESIC. At present, ESIC has 2.6 crore insured persons, which cover over 10 crore people, assuming four members of a family.
The minister also said there is a plan to increase the wage threshold for retirement fund body EPFO subscribers, and it may be considered at the next meeting of the Central Board of Trustees (CBT). At present, the wage threshold is Rs. 15,000 per month for coverage under its social security scheme.
Only after the Gazette notification is released will this law come into effect.
Regards
From India, Kolkata
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What I feel is if they increase the limit now, this will definitely help employers in the long run, considering the new amendments in Maternity Benefits.
New Proposed Amendment: https://biblehr.com/maternity-benefi...y-rajya-sabha/
New ESI Amendment: https://biblehr.com/employees-state-...from-rs-15000/
From India, Kochi
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New Proposed Amendment: https://biblehr.com/maternity-benefi...y-rajya-sabha/
New ESI Amendment: https://biblehr.com/employees-state-...from-rs-15000/
From India, Kochi
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Hi, Thanks for the information, its really helpful Is there any notification released for the above...??? Regards Sathya Narayana Y S
From India, Bengaluru
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From India, Bengaluru
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Sir , thanks for sharing . Please let me know is there any notification for this regarding the ESI ? Regards Rajeev Dixit
From India, Bangalore
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From India, Bangalore
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Yes thats true
The Employees’ State Insurance Corporation (ESIC) raised the monthly wage limit for coverage under its health insurance scheme to ₹21,000 from ₹15,000, Labour Minister Bandaru Dattatreya said on Tuesday 07th Sept. 2016. The ESIC also decided to let existing members with salaries over the limit decide on continuing their membership. Notably, ESIC provides social security benefits as a labour welfare measure.
From India, Ahmedabad
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The Employees’ State Insurance Corporation (ESIC) raised the monthly wage limit for coverage under its health insurance scheme to ₹21,000 from ₹15,000, Labour Minister Bandaru Dattatreya said on Tuesday 07th Sept. 2016. The ESIC also decided to let existing members with salaries over the limit decide on continuing their membership. Notably, ESIC provides social security benefits as a labour welfare measure.
From India, Ahmedabad
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Thanks for the information. Is there any notification / circular from the department for this? If any, pl share. Regards Kennady
From India, Madras
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From India, Madras
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So far, we have not received any notification from the ESIC authority or Circular from the Labor Department. Somewhere, I believe this is going to add extra costs for middle-class employers, and their cost per resource will be higher with EE+ER contributions. Contributions at gross salary cost too much for small industries, and they suffer huge financial liabilities.
Thanks
From India, Delhi
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Thanks
From India, Delhi
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ESIC Raises Wage Threshold for Health Insurance Coverage
The Employees' State Insurance Corporation (ESIC) today raised the monthly wage threshold to Rs 21,000 from the current Rs 15,000 for coverage under its health insurance scheme. In a meeting held today, 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 Bandaru Dattatreya told PTI after the board meeting of ESIC here. The Labour Minister is the Chairman of the ESIC Board. Both the decisions will be implemented from October 1. Dattatreya added that the move of raising the threshold will help bring in an additional 50 lakh members to ESIC.
At present, ESIC has 2.6 crore insured persons, which covers over 10 crore people, assuming four members of a family.
Potential Increase in EPFO Wage Threshold
The minister also said there is a plan to increase the wage threshold for retirement fund body EPFO subscribers, and it may be considered at the next meeting of the Central Board of Trustees (CBT). At present, the wage threshold is Rs 15,000 per month for coverage under its social security scheme.
Regards,
Rakesh Sharma
From India, Chandigarh
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The Employees' State Insurance Corporation (ESIC) today raised the monthly wage threshold to Rs 21,000 from the current Rs 15,000 for coverage under its health insurance scheme. In a meeting held today, 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 Bandaru Dattatreya told PTI after the board meeting of ESIC here. The Labour Minister is the Chairman of the ESIC Board. Both the decisions will be implemented from October 1. Dattatreya added that the move of raising the threshold will help bring in an additional 50 lakh members to ESIC.
At present, ESIC has 2.6 crore insured persons, which covers over 10 crore people, assuming four members of a family.
Potential Increase in EPFO Wage Threshold
The minister also said there is a plan to increase the wage threshold for retirement fund body EPFO subscribers, and it may be considered at the next meeting of the Central Board of Trustees (CBT). At present, the wage threshold is Rs 15,000 per month for coverage under its social security scheme.
Regards,
Rakesh Sharma
From India, Chandigarh
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Dear All,
In my opinion, medium-scale industries cannot bear the Employer Share, as it is around Rs. 998 per month, resulting in an annual increase of approximately Rs. 11,976. It is possible that in the future, the Labour Ministry may also raise the EPF wage limit from Rs. 15,000 to Rs. 21,000 or Rs. 25,000, which could pose an even bigger issue for the industries.
Thank you.
From India, Surat
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In my opinion, medium-scale industries cannot bear the Employer Share, as it is around Rs. 998 per month, resulting in an annual increase of approximately Rs. 11,976. It is possible that in the future, the Labour Ministry may also raise the EPF wage limit from Rs. 15,000 to Rs. 21,000 or Rs. 25,000, which could pose an even bigger issue for the industries.
Thank you.
From India, Surat
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Normally, in such cases, few employers will try to revise the CTC of employees to avoid the liability of the employer. This will have a huge impact on employees' take-home salary.
With Regards,
Sathya Narayana Y S
From India, Bengaluru
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With Regards,
Sathya Narayana Y S
From India, Bengaluru
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Mr. SOUBHIK KUMAR GHOSH Ji, thank you for providing information regarding the enhancement of the wage ceiling under the ESI Act, 1948 to Rs. 21,000/-. I request you to kindly place on record a copy of the gazette notification enhancing the said wage ceiling for the kind information of experts, seniors, and other members in this forum. With thanks.
From India, Noida
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From India, Noida
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Dear All
ESIC raises wage threshold to Rs. 21,000 from Rs.15,000
The Employees’ State Insurance Corporation on 06.09.2016 has raised the monthly wage threshold to Rs. 21,000, from the current Rs. 15,000, for coverage under its health insurance scheme which will be effective from 1st October, 2016.
The copy is circular awaited from ESIC and will be shared soon
From India, Delhi
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ESIC raises wage threshold to Rs. 21,000 from Rs.15,000
The Employees’ State Insurance Corporation on 06.09.2016 has raised the monthly wage threshold to Rs. 21,000, from the current Rs. 15,000, for coverage under its health insurance scheme which will be effective from 1st October, 2016.
The copy is circular awaited from ESIC and will be shared soon
From India, Delhi
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The limit increase is welcome, but there is no facility given by ESIC Corporation in our Ahmedabad rural area, i.e., Changodar. There is no hospital. After the implementation of two years, one small dispensary is there. In office hours, they can only provide first aid treatment. If the Government will provide hospital facilities in the implemented area, then raise the limit. Otherwise, it is a burden only to the employer.
Thanks,
J. L. Trivedi
Ahmedabad
From India, Ahmadabad
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Thanks,
J. L. Trivedi
Ahmedabad
From India, Ahmadabad
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I have one doubt: If an employee has a monthly salary above Rs. 21,000 but was previously covered by this ceiling, and if they wish to continue their membership, will they be required to contribute the same amount?
From India, Chennai
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From India, Chennai
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Please let me know; if employee opt to continue his membership; will he & employer need to contribute in the same way as it happens for employee with wages less than 21000?
From India, Chennai
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From India, Chennai
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Please let me know; if employee opt to continue his membership; will he & employer need to contribute in the same way as it happens for employee with wages less than 21000?
From India, Chennai
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From India, Chennai
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With this proactive initiative, an additional 50 lakh persons get coverage under ESIC Health scheme. Three cheers.
Ripple effect on the labor class economic development expected. After all, "Health is Wealth."
Mahesh
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Ripple effect on the labor class economic development expected. After all, "Health is Wealth."
Mahesh
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Ineffectiveness of ESIC Hospitals
Many ESIC hospitals are ineffective, and the contributions pose a significant liability on companies and employees. These hospitals offer only basic medical facilities, and sometimes, even for minor surgeries, it can take about 6-7 months to get an appointment. In some areas, there are no ESI hospitals, but ESIC deductions still need to be submitted. The government should consider better alternatives.
Need for Better Alternatives
Simply raising the limit to include more employees and workers under this Act will only result in dissatisfaction and frustration. The ESIC hospital staff enjoy various privileges, yet they are often inefficient. It might be more beneficial to provide Mediclaim coverage for workers instead of opting for ESIC.
From India, Delhi
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Many ESIC hospitals are ineffective, and the contributions pose a significant liability on companies and employees. These hospitals offer only basic medical facilities, and sometimes, even for minor surgeries, it can take about 6-7 months to get an appointment. In some areas, there are no ESI hospitals, but ESIC deductions still need to be submitted. The government should consider better alternatives.
Need for Better Alternatives
Simply raising the limit to include more employees and workers under this Act will only result in dissatisfaction and frustration. The ESIC hospital staff enjoy various privileges, yet they are often inefficient. It might be more beneficial to provide Mediclaim coverage for workers instead of opting for ESIC.
From India, Delhi
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Such proposals are published in newspapers regularly, and I have been noticing this for about two years. Unless 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 authorities' level. The present government appears to be focused more on publicity rather than actual implementation in accordance with the provisions of the law. An intention notification seems not to have been issued so far, and it typically requires at least a one-month period to publish the final notification after the intention gazette notification is released.
From India, Noida
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From India, Noida
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You are absolutely correct, Sir. To date, there has been no notification to this effect. I have also been observing numerous publications in the media for years, much like yourself. We are eagerly awaiting notifications to implement those proposed changes.
Recently, ESIC has released two publications—one expanding its implementation boundaries in certain states, including Maharashtra, and the other stating that in newly implemented areas, the contribution rates will be 1% for employees and 3% for employers. The implementation of the first publication has commenced for some companies effective from 01.08.2016, to the best of my knowledge, but the rates for them are still undecided.
Additionally, there have been no changes to the contribution portal. This is because the rules are still in the draft stage, and there has been no official notification on this matter. It appears that there is a lack of coordination between the department and the ministry. Both seem preoccupied with promoting their initiatives for workers through emails and SMSs.
Regarding the current topic of enhancing the threshold limit to Rs. 21,000 from 01.10.2016, I have also come across advertisements by the department in various media. It appears that this change will indeed be implemented from the specified date. One should prepare accordingly.
Thank you.
Regards
From India, Mumbai
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Recently, ESIC has released two publications—one expanding its implementation boundaries in certain states, including Maharashtra, and the other stating that in newly implemented areas, the contribution rates will be 1% for employees and 3% for employers. The implementation of the first publication has commenced for some companies effective from 01.08.2016, to the best of my knowledge, but the rates for them are still undecided.
Additionally, there have been no changes to the contribution portal. This is because the rules are still in the draft stage, and there has been no official notification on this matter. It appears that there is a lack of coordination between the department and the ministry. Both seem preoccupied with promoting their initiatives for workers through emails and SMSs.
Regarding the current topic of enhancing the threshold limit to Rs. 21,000 from 01.10.2016, I have also come across advertisements by the department in various media. It appears that this change will indeed be implemented from the specified date. One should prepare accordingly.
Thank you.
Regards
From India, Mumbai
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The amendment in ESI (Central) Rules, 1950, in the majority of cases, is from a prospective date and not retrospective. Therefore, there appears to be no likelihood that the proposed amendment (for which even a draft intention notification has not yet been published) will be effective from 01/10/2016. Further, if any irregularity is committed by the authorities, the courts are always there, and someone will bring a stay against such an amendment.
Further, the areas of Maharashtra, i.e., all district areas where the scheme was extended about a month ago, will be governed by the old rate of 1.75% + 4.75% and not by the new rates of 1% + 4%, which are still at a proposal stage and have not yet been finalized.
From India, Noida
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Further, the areas of Maharashtra, i.e., all district areas where the scheme was extended about a month ago, will be governed by the old rate of 1.75% + 4.75% and not by the new rates of 1% + 4%, which are still at a proposal stage and have not yet been finalized.
From India, Noida
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Yes information is correct celing is going to rose rs.21000/- from 15000/- noticication will come out within 2-3 days. Thanks & Regards, From, Sumit Kumar Saxena
From India, Ghaziabad
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From India, Ghaziabad
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Kindly let me know the amount of Rs 21000/- is the gross amount or its the basic amount on which esic amt will be deducted. and from which date it is implemented in maharashtra.
From India, Nagpur
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From India, Nagpur
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just wanted to know whether the celing of rs 21000/- is on gross salary or basic salary. and from which date it is effective in maharashtra.
From India, Nagpur
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From India, Nagpur
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Dear All, Have you notification/gazette/circular by esic about this (increased 15 k to 21K) Rgds Sanjay
From India, Delhi
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From India, Delhi
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Hi All, weather the ESI has been issue a Notification or Not?
From India, Chandigarh
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From India, Chandigarh
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Sir, it appears that the concerned government has not yet published the intended gazette notification regarding the enhancement of the wage ceiling to Rs. 21,000 under the ESI Act, 1948. If necessary, you can confirm the position from the appropriate government authority, i.e., the Ministry of Labour, Central Government, New Delhi.
From India, Noida
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From India, Noida
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Dear Friends, Can anybody share the Gazette notification of the same, if it has been released, as we have to plan various things accordingly like salary restructuring etc. Warm Regards Abhinav Tiwari
From India, New Delhi
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From India, New Delhi
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Hi, As per my understanding, this is not at all helpful and employees are not happy with this amendment. Ground reality is like, visiting ESIC Hospital like wasting time and gaining nothing.
From India, Delhi
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From India, Delhi
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Please find attached the draft notification.
The wage limit for coverage of an employee under sub-clause (b) of clause (9) of Section 2 of the Act shall be twenty-one thousand rupees a month. The said draft rules will be taken into consideration after the expiry of a period of thirty days.
From India, Surat
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The wage limit for coverage of an employee under sub-clause (b) of clause (9) of Section 2 of the Act shall be twenty-one thousand rupees a month. The said draft rules will be taken into consideration after the expiry of a period of thirty days.
From India, Surat
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Notification on ESI Threshold Limit Increase
Please find a notification by the Government of India dated 06.10.2016 on draft rules increasing the ESI threshold limit to Rs. 21,000. According to this notification, affected persons should submit suggestions or objections to Shri Ajay Malik, Under Secretary, Ministry of Labour and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001 within 30 days of publishing this notification.
You are given an opportunity to raise your objection, if any, to this amendment.
EDITED: Posting by Chirag Shah seen by me after my posting this.
Regards
From India, Mumbai
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Please find a notification by the Government of India dated 06.10.2016 on draft rules increasing the ESI threshold limit to Rs. 21,000. According to this notification, affected persons should submit suggestions or objections to Shri Ajay Malik, Under Secretary, Ministry of Labour and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001 within 30 days of publishing this notification.
You are given an opportunity to raise your objection, if any, to this amendment.
EDITED: Posting by Chirag Shah seen by me after my posting this.
Regards
From India, Mumbai
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Draft of ESI Amendment
The ceiling limit has been increased from Rs 15,000 to Rs 21,000, as published in the Gazette on October 6, 2016. This requires 30 days to issue the notification of the amendment after the expiry of thirty days. As such, the notification may come into force from November 5, 2016. Would it be applicable from October 1, 2016, i.e., a backdate? If so, what would happen to those establishments/companies which would pay before November 5?
In addition to the above, if it comes into force from October 1, 2016, how should the DF be submitted under the rules within 10 days from the date of appointment/applicability of the notification? If the notification is applicable from a retrospective date, i.e., in between November, how would salary/wages be calculated for the broken period, especially for ESI?
From India, Chandigarh
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The ceiling limit has been increased from Rs 15,000 to Rs 21,000, as published in the Gazette on October 6, 2016. This requires 30 days to issue the notification of the amendment after the expiry of thirty days. As such, the notification may come into force from November 5, 2016. Would it be applicable from October 1, 2016, i.e., a backdate? If so, what would happen to those establishments/companies which would pay before November 5?
In addition to the above, if it comes into force from October 1, 2016, how should the DF be submitted under the rules within 10 days from the date of appointment/applicability of the notification? If the notification is applicable from a retrospective date, i.e., in between November, how would salary/wages be calculated for the broken period, especially for ESI?
From India, Chandigarh
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Amendments in Rules and Regulations
Sir, I think the amendments in rules and regulations, by which the opinions or views of the affected persons (i.e., employees and employers in this case) are sought, are generally effective from a prospective date. Please refer to past notifications of a similar nature. This notification is preliminary, and the final version is scheduled to be issued by the appropriate government after examining the views received in response to this notification.
Submitting Objections to Preliminary Notification
As mentioned by Sh. Korgaonkar ji in his remarks above, any person affected by the aforementioned preliminary notification can submit his or her objections and await the final notification or decision on the subject.
From India, Noida
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Sir, I think the amendments in rules and regulations, by which the opinions or views of the affected persons (i.e., employees and employers in this case) are sought, are generally effective from a prospective date. Please refer to past notifications of a similar nature. This notification is preliminary, and the final version is scheduled to be issued by the appropriate government after examining the views received in response to this notification.
Submitting Objections to Preliminary Notification
As mentioned by Sh. Korgaonkar ji in his remarks above, any person affected by the aforementioned preliminary notification can submit his or her objections and await the final notification or decision on the subject.
From India, Noida
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Mr. Harsh Kumar Ji rightly mentioned that such implementations are always prospective. I would like to draw attention to the ESI Law. The salary of existing employees at the beginning of the contribution period is considered for coverage under ESIS. This means the status of an employee in April and October, regarding whether they are covered under ESIS or not, is maintained throughout the contribution period. If the government finalizes the decision in November 2016, in my view, there is an opportunity to consider this notification for implementation in April 2017 for existing employees. It will depend on the interpretation of the wording in the notification. It is important to remember that this involves enhancing the threshold salary for coverage by the government from a specific date. I present this topic for brainstorming.
From India, Mumbai
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From India, Mumbai
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I noticed that the draft rules published only talk about raising the limit from 15,000 to 21,000. Whereas the news articles last month also mentioned that existing insured persons would be given the option to continue their membership even if their salary crosses the limit of 21,000. So does that mean the optional coverage beyond a 21,000 salary will have to be notified separately either as an amendment or draft rule again?
From India, Delhi
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From India, Delhi
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In my last thread, I had raised the question of the rule of allotment of Insurance Numbers within ten days. If the notification is enforced from October 1, 2016, it would be a breach of the law. Currently, the notification has not been enforced, so we cannot obtain the Insurance number. Should we obtain the Insurance number for those persons who are expected to become members under the scheme?
From India, Chandigarh
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From India, Chandigarh
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Hi HR colleagues, from an organization/HR perspective, what is the impact the raise in ESIC wages could have? Thanks
From United Arab Emirates
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From United Arab Emirates
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It is not a question of one or some employers. If the majority of employers oppose it in India, then it may have an effect. Usually, a large number of employers do not bother about that. Moreover, it will be decided in the next meeting of the ESI standing committee, which includes representatives from Labour and Employers. It is a social welfare scheme; usually, objections may not be accepted due to financial burden. So, there are high expectations of its passing, but the date of effect may not be clear until the notification. In this respect, I agree with Mr. Moondra's answer.
From India, Chandigarh
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From India, Chandigarh
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suppose esic 21000 ceiling approved that time more burden from the company side
From India, Velluru
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From India, Velluru
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Dear All, Enclosing the press release note in the matter of cealing rose of esic from 15000/- to 21000/- for the reference. Thanks & Regards, From, Sumit Kumar Saxena
From India, Ghaziabad
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From India, Ghaziabad
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Clarification on ESI Act Amendment and Wage Threshold
Regarding the threshold decision to raise salaries/wages from Rs 15,000 to Rs 21,000 under the ESI Act amendment, I believe there has been extensive discussion in this forum. Based on these discussions, the conclusion is that this amendment will only take effect after notification by the Central Government, which may not occur before 6th November 2016.
It is anticipated that the amendment will be effective from December 2016 (if the notification is issued before 1st December 2016). If not in effect from 1st December, workers/IP may not qualify for the 92 days of service needed to avail sickness/maternity benefits as required under the ESI Act. If not effective from 1st December, no one would complete the required 92 days of service in the following three months, as the total days would be 90 from January to March. Therefore, it is expected to be applicable from 1st April 2017.
It is important to note that the statement of the Labour Minister or the chairman of any standing committee cannot establish the law without the issuance of an official notification in the gazette.
Let us wait for the notification. Until then, I suggest we refrain from discussing this topic further and wait for the notification to be issued before making any final decisions based on it.
From India, Chandigarh
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Regarding the threshold decision to raise salaries/wages from Rs 15,000 to Rs 21,000 under the ESI Act amendment, I believe there has been extensive discussion in this forum. Based on these discussions, the conclusion is that this amendment will only take effect after notification by the Central Government, which may not occur before 6th November 2016.
It is anticipated that the amendment will be effective from December 2016 (if the notification is issued before 1st December 2016). If not in effect from 1st December, workers/IP may not qualify for the 92 days of service needed to avail sickness/maternity benefits as required under the ESI Act. If not effective from 1st December, no one would complete the required 92 days of service in the following three months, as the total days would be 90 from January to March. Therefore, it is expected to be applicable from 1st April 2017.
It is important to note that the statement of the Labour Minister or the chairman of any standing committee cannot establish the law without the issuance of an official notification in the gazette.
Let us wait for the notification. Until then, I suggest we refrain from discussing this topic further and wait for the notification to be issued before making any final decisions based on it.
From India, Chandigarh
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Hi all,
I have a small doubt. I am working in a company where they are looking to regularize the employment with PF and ESI from November 2016. Previously, no PF or ESI was deducted. So, will the new amendment be applicable to all existing employees who are receiving a gross salary below 21000, or only to new employees who joined in October 2016?
Regards,
Sagar
From India, Hyderabad
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I have a small doubt. I am working in a company where they are looking to regularize the employment with PF and ESI from November 2016. Previously, no PF or ESI was deducted. So, will the new amendment be applicable to all existing employees who are receiving a gross salary below 21000, or only to new employees who joined in October 2016?
Regards,
Sagar
From India, Hyderabad
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ESI Corporation has decided to enhance the wage ceiling for coverage of employees under the ESI Act from Rs. 15,000/- to Rs. 21,000/-. The Press Release is available at the following link:
1. Employees' State Insurance Corporation
2. ESIC Services
3. Press Release
4. S.No-5 (Achievements/Initiatives of ESIC during the Past Two Years.)
This may be a draft copy for the Press Release. To obtain the official Government Order (G.O), we may need to wait for some more time.
From India, Vijayawada
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1. Employees' State Insurance Corporation
2. ESIC Services
3. Press Release
4. S.No-5 (Achievements/Initiatives of ESIC during the Past Two Years.)
This may be a draft copy for the Press Release. To obtain the official Government Order (G.O), we may need to wait for some more time.
From India, Vijayawada
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Hi all,
Before commenting on the change, please take some time to interact with ESIC-covered employees to understand the actual situation, the services provided by ESIC, and the real facts regarding the change. It is essential to grasp the needs and wishes of employees who are currently covered by ESIC or are soon going to be covered.
This is just my perspective; please do not interpret it negatively.
Thank you.
From India, Delhi
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Before commenting on the change, please take some time to interact with ESIC-covered employees to understand the actual situation, the services provided by ESIC, and the real facts regarding the change. It is essential to grasp the needs and wishes of employees who are currently covered by ESIC or are soon going to be covered.
This is just my perspective; please do not interpret it negatively.
Thank you.
From India, Delhi
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Pls note till today no circular is there that it will be effective from...............................? If any circular/notification is there pls share with members. thanks jagia
From India, Gurgaon
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From India, Gurgaon
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Final Notification on Wage Ceiling Enhancement
It is anticipated that the appropriate government will take more time, approximately one month, to issue the final notification on the enhancement of the wage ceiling. After the 30-day period mentioned in the intention notification, the government will review the views and objections of the affected parties and then consider issuing the final notification.
For example, the intention notification for the last enhancement of the wage ceiling (current ceiling of Rs. 15,000) was issued on 27/02/2010, and its final notification was issued on 20/04/2010, becoming applicable from 01/05/2010. It would be beneficial for interested individuals contributing to this CiteHR forum to stay in touch with the nearest ESIC office to stay updated on any developments.
Regards
From India, Noida
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It is anticipated that the appropriate government will take more time, approximately one month, to issue the final notification on the enhancement of the wage ceiling. After the 30-day period mentioned in the intention notification, the government will review the views and objections of the affected parties and then consider issuing the final notification.
For example, the intention notification for the last enhancement of the wage ceiling (current ceiling of Rs. 15,000) was issued on 27/02/2010, and its final notification was issued on 20/04/2010, becoming applicable from 01/05/2010. It would be beneficial for interested individuals contributing to this CiteHR forum to stay in touch with the nearest ESIC office to stay updated on any developments.
Regards
From India, Noida
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Hi everyone, please share the ESIC notification, if received ...
From India, New Delhi
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From India, New Delhi
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Hi, as per above , if effective date is 1st October 2016 , as we have already processed salary should we pay the arrears ?
From India, Bangalore
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From India, Bangalore
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This notification for the increase in ESI limit is not expected for implementation before December 2016 because the notification issued in November 2016 may not be effective from the middle of the month. However, if it is issued in December, it would be expected to be applicable from April 2017. This is because from January to March 2017, no one would have completed 92 days of service to avail of the sickness benefit. Hence, let's wait for December 2016.
From India, Chandigarh
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From India, Chandigarh
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Dear All, want, any notification of increase ceiling of ESIC limit 21000. issue or not. Pls. reply! Maan
From India , New Delhi
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From India , New Delhi
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Dear All, Please find a Gazette Notification dated 22.12.2016 in the subject matter. Effective from 01.01.2017 ESI threshold limit is increased to Rs. 21,000/-.
From India, Mumbai
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From India, Mumbai
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This Gazette notification is not updated on the ESIC website. Please check the current wage limit in the link provided below:
Coverage | Employees' State Insurance Corporation, Ministry of Labour & Employment, Government of India
From India, Chennai
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Coverage | Employees' State Insurance Corporation, Ministry of Labour & Employment, Government of India
From India, Chennai
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ESIC limit was increased to Rs. 21,000. The circular was released in the year 2016, but the increased ESI contribution salary limit is effective from 1st Jan 2017.
[ESIC Limit Increased To Rs. 21,000 Circular & ESI Contribution Salary Limit](http://www.hrcabin.com/esic-limit-increased-to-rs-21000-circular/)
From India, Visakhapatnam
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[ESIC Limit Increased To Rs. 21,000 Circular & ESI Contribution Salary Limit](http://www.hrcabin.com/esic-limit-increased-to-rs-21000-circular/)
From India, Visakhapatnam
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Till now, there is no further notification about the increase in the threshold wages of ESI; still, it is Rs. 21,000. [ESIC Limit Increased To Rs 21000 Circular & ESI Contribution Salary Limit](http://www.hrcabin.com/esic-limit-increased-to-rs-21000-circular/)
From India, Visakhapatnam
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From India, Visakhapatnam
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ESIC Notification ESIC Raises Wage Threshold To Rs 21,000.pdf