Harsh Kumar Mehta
Consultant In Labour Laws/hr
Sumitk.saxena
Service/manager-hr
JAgdis L Trivedi
Senior General Manager H R Unison Pharmaceuticals
Anil Gaur
Employeement
RAJU BUDDHA
Private Employee
Gprakasammsw
Hr Executive
Elumalai Elugan
Hr Officer
Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
SOUBHIK KUMAR GHOSH
Hr - Incharge
Rajeevdixit
Hr , Personnel & Admin
Arihant_ac
Legal Advisor
Muralimbl
Hr Proffessional
SrAdvBhat
Sr Advocate
Suparna Juneja
General Manager- H.r & Complaince
Teotiamanojkumar
Human Resource
CarolineThomas
Hr, People Management
+13 Others

Thread Started by #korgaonkar k a

Dear All,

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. 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.

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.
6th September 2016 From India, Mumbai
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 per cent to Rs 350 per day, from the existing Rs 246. ESIC raised its wage ceiling by 40 per cent, 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 organisation 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 per cent of a worker's salary towards ESIC as contribution while for workers, it stands at 1.75 per cent.

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).

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 co-ordination with the Health Informatics and Electronics Division (HIED), C-DAC, Mohali, under the Digital India programme.

The launch of these services will lead to provision of specialised healthcare services to ESIC beneficiaries residing or working at different locations with limited medical specialist services.
7th September 2016 From India, Delhi
Dear All

Please be informed that The ESIC raises 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 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. 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.

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.

Only after Gazette notification is released , this law will come to effect.
7th September 2016 From India, Kolkata
what I feel is if they increase the limit now this will definitely going to help employer in long run, considering 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/
7th September 2016 From India, Kochi
#Anonymous
Hi, Thanks for the information, its really helpful Is there any notification released for the above...??? Regards Sathya Narayana Y S
7th September 2016 From India, Bengaluru
ESIC notification will follow shortly as this was discussed and decided recently, to the best of my knowledge.
7th September 2016 From India, Ahmadabad
Sir , thanks for sharing . Please let me know is there any notification for this regarding the ESI ? Regards Rajeev Dixit
7th September 2016 From India, Bangalore
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.
7th September 2016 From India, Ahmedabad
Thanks for the information. Is there any notification / circular from the department for this? If any, pl share. Regards Kennady
7th September 2016 From India, Madras
#Anonymous
So far we have not received any notification from ESIC authority or Circular from Labour department, somewhere i believe this is going to add extra cost on middle class employer & their cost of per resource will be higher with EE+ER contribution.
Contribution @Gross salary cost too much for small industry & they suffer huge financial liablities.
Thanks
7th September 2016 From India, Delhi
Hello All,

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 MinisterBandaru Dattatreya told PTI after the board meeting of ESIC here. 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.

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.
Regards,
Rakesh Sharma
7th September 2016 From India, Chandigarh
Dear All,
As per my opinion all the medium scale industries can't bear the Employer Share as it's around Re.998/- per month, and around Re. 11,976/- per anum will increase. Might in future Labour Ministry also increase the EPF Wage limit from Rs. 15000/- to 21000/- or 25000/- which will be even biggest issue for the Industries.
7th September 2016 From India, Surat
#Anonymous
Normally in such cases few employers will try to revise the CTC of employees in turn to avoid the liability of employer this will have huge impact on employees take home salary.
With Regards
Sathya Narayana Y S
8th September 2016 From India, Bengaluru
Mr. SOUBHIK KUMAR GHOSH ji , thank you for providing information regarding enhancement of wage ceiling under ESI Act, 1948 to Rs. 21000/-. I will request you to please place on record, a copy of gazette notification enhancing said wage ceiling for kind information of experts and seniors and other members in this forum. With thanks.
8th September 2016 From India, Noida
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
8th September 2016 From India, Delhi
The limit increase is welcome but there is no facility given by E S I C corporation in our Ahmedabad rural area i e changodar. There is no hospital after implementation of two yer one small dispensary is there in office hrs they can do only first aid treatment if Government will give hospital facility in implemented area then raise the Limit otherwise it is burden to employer only
Thanks
J L Trivedi
Ahmedabad
8th September 2016 From India, Ahmadabad
#Anonymous
I have one doubt that: employee have monthly salary above Rs 21000 but before he was covered in this ceiling, and if he wants to continue his membership then will he be required to contribute for same?
9th September 2016 From India, Chennai
#Anonymous
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?
9th September 2016 From India, Chennai
#Anonymous
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?
9th September 2016 From India, Chennai
With this proactive Initiative,additional 50 lakh persons get coverage under ESIC Health scheme. Three cheers.
Ripple effect,on Labour class economic devt.expected. After all "Health is Wealth". Mahesh
10th September 2016
#Anonymous
Many ESIC hospitals are useless and the contributions are a big big liability on the Companies as well as on the employees. These hospitals provide only basic medical facilities and sometimes for even small surgeries, it takes about 6-7 month to get an appointment. At some places, there are no ESI hospitals but ESIC deductions have to be submitted. Government should think of some better alternative. Just by raising the limit in order to bring more employees & workmen under this Act, will lead to disgruntlement and disappointment. The ESIC hospital staff get all the privileges but they are most inefficient. It is better to have Mediclaim cover for workmen than go for ESIC.
10th September 2016 From India, Delhi
Sir. such like proposals are published in newspapers regularly and I am finding the same since about 2 years. Until and unless, the appropriate government( MOL & E, Central Govt) issues intention notification under relevant ESI (Central) Rules, we cannot say that there is definitely some proposal at the level of authorities. The present Govt. appears to be doing much publicity, rather than doing any think actually as per provisions of law. Intention notification appears to have not so far been issued and it requires at least a period of one month to publish final notification after intention gazette notification is published..
10th September 2016 From India, Noida
Dear Harsh Kumar ji,

Reference : your post #22.

You are very correct Sir. Till date there is no notification to this effect.

I am also seeing many publications in media regularly years together as like you. We are waiting for notifications to implement those things.

Recently, ESIC only came out with two publications - one is expanding its boundaries of implementation in certain States including Maharashtra and second one is, in newly implemented areas the rate of contribution would be 1% to EE and and 3% to ER.

Implementation of First one has started by some of the Companies effective from 01.08.2016 to my knowledge but the rates to them are undecided yet.

Also there is no change in portal of this contribution. There can not be, as the same is still in draft rules and there is no notification on this subject.

It seems there is no co-ordination in the department and ministry. Both are busy in publishing their so called pro-worker initiatives through emails after emails and SMSs after SMSs.

In the current topic of enhancement of threshold limit to Rs. 21000/- from 01.10.2016 I have came across advertisements also by the department in various media. This seems to be implemented definitely from 01.10.2016. One should geared up himself accordingly.
11th September 2016 From India, Mumbai
1. Dear Korgaonkar ji, the amendment in ESI (Central) Rules, 1950 in 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 draft intention notification has not so far been published) will be effective w.e.f. 01/10/2016. Further, if in case any irregularity is committed by the authorities, the courts are always there and somebody will bring stay against such amendment.
2. Further, the areas of Maharashtra etc. i.e. all district areas, where the scheme was extended since about one month earlier will be governed by the old rate of 1.75%+4.75% and not by new rates of 1%+4%, which is still at a proposal stage and has not so far been finalised.
11th September 2016 From India, Noida
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
12th September 2016 From India, Ghaziabad
Dear all, Greetings of the day !! It’s really good news for most of the personnel who ever working under the wage ceiling of 15000 to 21000.thanks for the timely updates. regards, annuradha
14th September 2016 From India, Chennai
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.
15th September 2016 From India, Nagpur
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.
15th September 2016 From India, Nagpur
hi, i am very new in excel, i have little knowledge in excel. I know how to addition, Multiplication, Min, max, Avg, count etc but i don't know how would excel calculate tax, vat, invoice, discount, HRA, DA, PF etc so kindly explain or send me the data for the same.
16th September 2016 From India, Guwahati
Dear All, Have you notification/gazette/circular by esic about this (increased 15 k to 21K) Rgds Sanjay
24th September 2016 From India, Delhi
Hi All, weather the ESI has been issue a Notification or Not?
24th September 2016 From India, Chandigarh
Hi, m unable to get hold of the notification, can anyone please share the same
27th September 2016 From India, Delhi
Sir, it appears that the concerned government has not so far published intention gazette notification regarding enhancement of wage ceiling to Rs. 21000/- under ESI Act, 1948. If required, you can confirm the position from the appropriate govt. i.e. Ministry of Labour, Central Govt., New Delhi.
27th September 2016 From India, Noida
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
30th September 2016 From India, New Delhi
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.
7th October 2016 From India, Delhi
pfa 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 expiry of a period of thirty days
8th October 2016 From India, Surat

Attached Files
Membership is required for download. Create An Account First
File Type: pdf 172109.pdf (938.8 KB, 176 views)

Dear All,
Please find a notification by GOI dated 06.10.2016 on draft rules increasing ESI threshold limit to 21000/-.
According to this notification, affected persons should submit suggestions / 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.
8th October 2016 From India, Mumbai

Attached Files
Membership is required for download. Create An Account First
File Type: pdf ESIC Draft Rules Notification for Increase Limit 21000.pdf (938.8 KB, 163 views)

Draft of ESI amendment the ceiling limit from 15000 to 21000 has been published in the Gazette on October 6, 2016, which require 30 days to issue the notification of amendment after expiry of thirty days as such notification may come in force from November 5, 2016. Would it may be applicable from October 1, 2016 i.e. from back date. If so what would happen to those ESTABLISHMENT/COMPANIES, which would pay before November 5.
In addition to the above if it come in force from October 1, 2016, How DF may be submitted under the rules with in 10 days form the date of appointment/applicability of the notification. If notification applicable from prosperous date i.e. in between of November, How salary/wages would be calculated for broken period specially for ESI?
10th October 2016 From India, Chandigarh
1. Sir, I think, the amendments in rules/regulations vide which the opinion or views of the affected persons (i.e. employees and employers in this case) are called are generally effective from a prospective date. Please see past such notifications. This is an intention notification and final notification is scheduled to be issued by the appropriate government after examining views received in response to this notification.
2.As mentioned by Sh. Korgaonkar ji, in his remarks as above, any affected person due to above intention notification can submit his/her objections and wait for final notification/decision on the subject.
10th October 2016 From India, Noida
Dear Friends,
Mr. Harsh Kumar ji said it rightly that such implementations are always prospective.
I further draw kind attention of you all to the ESI Law. Salary in respect of existing employees at the beginning of contribution period is taken for consideration of coverage under ESIS. This means the status of employee in the month of April and October in regards to whether he is covered under ESIS or not is maintained throughout contribution period.
If government comes out with final decision in November 2016, in my view there is a scope for us to take this notification for implementation in April 2017 for existing employees. It will be all depends upon playing with the wordings in the notification. One must also keep it in mind that this is a case of enhancing threshold salary for coverage by government from specific date.
I just throw this subject for brainstorming.
10th October 2016 From India, Mumbai
I noticed that the draft rules published only talk about the raising of the limit from 15,000 to 21,000. Whereas the news articles last month also mentioned that existing insured persons would also 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 21,000 salary will have to be notified separately either as an amendment or draft rule again?
10th October 2016 From India, Delhi
In my last thread I had raised the question of rule of allotment of Insurance No. with in ten days. If notification in-forced from October 1, 2016 it would breach of law and in current position notification yet not in-forced as such we can't get the Insurance number. Should we get the Insurance number of those persons, who are expected to become member under the scheme?
11th October 2016 From India, Chandigarh
Hi HR colleagues, from an organization/HR perspective, what is the impact the raise in ESIC wages could have? Thanks
12th October 2016 From United Arab Emirates
jkmcemail 19 You are right, but employer means entrepreneur in does not matter in the Act, whether he is employing 2 persons or 2 lacs. Definition of employer is the same in all the Indian Acts.
13th October 2016 From India, Chandigarh
It is not the question of one or some employer. If majority of employer oppose it in India, then it may effect. Usually large scale of employers do not bother for that. Moreover it would be decided in the next meeting of the ESI standing committee, which includes Labour and Employer's and representatives. It is social welfare scheme usually objections may not be accepted due to financially burden. So maximum expectations off its passing, but date of effect may not be cleared till the notification. In this respect I agree with the answer of Mr Moondra
14th October 2016 From India, Chandigarh
suppose esic 21000 ceiling approved that time more burden from the company side
14th October 2016 From India, Velluru
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
17th October 2016 From India, Ghaziabad

Attached Files
Membership is required for download. Create An Account First
File Type: pdf ESIC raises wages 15000 to 21000.pdf (65.0 KB, 118 views)

Hi all, about threshold decision raising of salaries/wages from 15000 to 21000 under ESI Act amendment, I think too much discussion has been made in this forum and according to this discussion the result has come out that this amendment would effect only after the notification by the Central Govt., which may not come before 6th November 2016 and positively it would be effected from December 2016 (i notification issued before 1st December 2016), because if not effected from 1st December workers/IP may qualify the 92 days of service of 92 days to avail sickness/maternity benefit required under the ESI Act. If not effect from 1st December no one would complete the 92 days service in next three months, because total days would be 90 in January to March. Hence it would be applicable from !st April 2017. The statement of Labour Minister or say chairman of any standing committee cannot make the law without issue of notification under the official gazette.So let we wait for the notification. Till that I think we should have to stop this topic and wait for the notification and should leave the final decision on the notification.
18th October 2016 From India, Chandigarh
Whether there has been made new rule that EMPLOYER CONTRIBUTION OF EPF/EPS 3.67/8.33 would not be returned to employee till the age of 57/59 years. I have read in another form that this kind rule has been made from February 2016. Is there any kind of circular/notification issued by the department?
18th October 2016 From India, Chandigarh
Hi All,
A small doubt,am working in a company where they are looking to regularize the employment with PF and ESI from Nov 2016.(No PF or ESI was deducted earlier)
so the new amendment will be applicable to all the existing employees who are getting gross salary of below 21000 or only for the new employees joined in the month of Oct 2016.
Regards,
Sagar
19th October 2016 From India, Hyderabad

Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co