Query on ESI Maximum Limit
I want to know the maximum limit for ESI, which means what is the maximum salary of an employee that is taken as the standard to provide ESI. Earlier, it was Rs. 10,000, but now I have come to know that it has been raised. What is the new limit for that?
Regards,
Shweta Singh
From India, Hyderabad
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13I want to know the maximum limit for ESI, which means what is the maximum salary of an employee that is taken as the standard to provide ESI. Earlier, it was Rs. 10,000, but now I have come to know that it has been raised. What is the new limit for that?
Regards,
Shweta Singh
From India, Hyderabad
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Pls. go through the below amendment of this act.
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. 15,000. The limit of salary was Rs. 7,500 until Sep 31st, 2006, and from October 1st, 2006, it was increased to Rs. 10,000. Now it is increased to 15,000. Probably, it is expected that this limit shall increase to 20,000 in the 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 a monthly salary of Rs. 15,000 or below will be covered under ESI, and the employer will have to contribute 4.75% of their salary.
It is not optional at the instance of the employee.
As far as ESI is concerned, you need a total of 20 employees drawing less than 15,000 Gross Salary. It means if you have a minimum of 20 employees who are drawing 15,000 or below, then it's mandatory for every employer.
Nirav Shah
9998 38 99 38
Ahmedabad
From India
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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. 15,000. The limit of salary was Rs. 7,500 until Sep 31st, 2006, and from October 1st, 2006, it was increased to Rs. 10,000. Now it is increased to 15,000. Probably, it is expected that this limit shall increase to 20,000 in the 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 a monthly salary of Rs. 15,000 or below will be covered under ESI, and the employer will have to contribute 4.75% of their salary.
It is not optional at the instance of the employee.
As far as ESI is concerned, you need a total of 20 employees drawing less than 15,000 Gross Salary. It means if you have a minimum of 20 employees who are drawing 15,000 or below, then it's mandatory for every employer.
Nirav Shah
9998 38 99 38
Ahmedabad
From India
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Employees' State Insurance Act 1948.doc
Employees' State Insurance Act 1948.pdf