ESIC has circulated a gazette notification stating increase in wage ceiling from existing Rs. 15,000 to Rs. 21,000 effective from 1 January 2017. Here is a copy of it.
From India, Jaipur
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92From India, Jaipur
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The Employees' State Insurance Corporation (ESIC) has indeed increased the wage ceiling for coverage under the ESI Act. Previously, employees earning up to Rs. 15,000 per month were eligible for ESI benefits. Now, effective from 1st January 2017, this limit has been raised to Rs. 21,000 per month.
📝 Here's a simple guide on the implications of this change:
1️⃣ Eligibility: Employees whose gross salary is up to Rs. 21,000 per month are now eligible for ESI benefits. This includes both current employees and new hires.
2️⃣ Contribution: Both employers and employees contribute to the ESI fund. The current rate is 4.75% for employers and 1.75% for employees. With the increased wage ceiling, the amount of contribution will likely increase for those employees whose salaries are between Rs. 15,000 and Rs. 21,000.
3️⃣ Benefits: The ESI scheme provides a range of benefits such as sickness, maternity, and disability benefits, as well as medical care for the employee and their family. With the increased wage ceiling, more employees will now be able to avail these benefits.
⚠️ Note: It's crucial to implement this change in your payroll system to ensure accurate calculation and deduction of ESI contributions.
📝 Steps to implement this change:
1️⃣ Update Payroll System: Inform your payroll department or provider about the change. They need to adjust the system settings to reflect the new ESI wage ceiling.
2️⃣ Employee Communication: Notify your employees about this change. Let them know that the increased wage ceiling might affect their net take-home pay due to the potential increase in ESI contributions. Also, inform them about the additional benefits they will be entitled to under the ESI scheme.
3️⃣ Compliance: Ensure that you are in compliance with all relevant labor laws and regulations. This includes accurately calculating and remitting ESI contributions, maintaining required records, and submitting necessary returns and reports to ESIC.
This is indeed a significant change that will impact many employers and employees. It's essential to handle this change effectively to ensure compliance and minimize disruption. Remember, accurate and timely implementation is key to managing this change effectively. 👍
From India, Gurugram
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📝 Here's a simple guide on the implications of this change:
1️⃣ Eligibility: Employees whose gross salary is up to Rs. 21,000 per month are now eligible for ESI benefits. This includes both current employees and new hires.
2️⃣ Contribution: Both employers and employees contribute to the ESI fund. The current rate is 4.75% for employers and 1.75% for employees. With the increased wage ceiling, the amount of contribution will likely increase for those employees whose salaries are between Rs. 15,000 and Rs. 21,000.
3️⃣ Benefits: The ESI scheme provides a range of benefits such as sickness, maternity, and disability benefits, as well as medical care for the employee and their family. With the increased wage ceiling, more employees will now be able to avail these benefits.
⚠️ Note: It's crucial to implement this change in your payroll system to ensure accurate calculation and deduction of ESI contributions.
📝 Steps to implement this change:
1️⃣ Update Payroll System: Inform your payroll department or provider about the change. They need to adjust the system settings to reflect the new ESI wage ceiling.
2️⃣ Employee Communication: Notify your employees about this change. Let them know that the increased wage ceiling might affect their net take-home pay due to the potential increase in ESI contributions. Also, inform them about the additional benefits they will be entitled to under the ESI scheme.
3️⃣ Compliance: Ensure that you are in compliance with all relevant labor laws and regulations. This includes accurately calculating and remitting ESI contributions, maintaining required records, and submitting necessary returns and reports to ESIC.
This is indeed a significant change that will impact many employers and employees. It's essential to handle this change effectively to ensure compliance and minimize disruption. Remember, accurate and timely implementation is key to managing this change effectively. 👍
From India, Gurugram
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