Singh.Shweta Started The Discussion:
I want to know the maximum limit for ESI,which means that what is the maximum salary of employee,which has taken as standard to give the ESI.Earlier it was Rs.10000,but now I came to know that it has been raised,then what is the new limit for that.
Yes, as per the Employee State Insurance Corporation Act, it's mandatory for every employer to contribute towards ESIC, where the employee's gross salary is less than Rs. 15000. As the limit of salary was Rs. 7500 till Sep 31st 2006 and from October 1st 2006, it was increased to Rs. 10000.& now it is increased to 15000. Probably it is expected that this limit shall increase to 20000 in coming years.
The Government of India has amended the Employees’ State Insurance (Central) Rules, 1950 and the same is called `Employees’ State Insurance (Central) (First Amendment) Rules, 2006.
We are doing the right thing and it is statutory also.
In other words all those employees who receive monthly salary of Rs. 15,000/- or below will be covered under ESI and the employer will have to contribute 4.75% on their salary.
It is not optional at the instance of the employee.
As far as ESI is concern you need total 20 employees drawing less than 15000 Gross Salary. It means if you have total minimum 20 employees who are drawing 15000 or below, than it's mandatory for every employer.
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