Saswatabanerjee
Partner - Risk Management
Harsh Kumar Mehta
Consultant In Labour Laws/hr
R.N.Khola
Labour Laws & Ir
Vltreddy999
Hr , Ir And Legal Matters
+3 Others

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Our Hon'able Labor minister has declared the enhancement of wage ceiling from current Rs. 15000/= to Rs. 21000/= under the ESI Act for the purpose of coverage of employee and this is to be effective from 01.10.2016.
Is there any notification to this effect ???
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Sir, so far I could not see or find any intention notification by the appropriate government on the subject. If desire, you can confirm from the Ministry of Labour & Employment, Central Govt. Perhaps this Govt. is running its business by making various announcements in the newspapers/media only.
Dear Members,
I also agree with the statement of Mr. Mehta. In a similar case we see that Govt. has finalized SSA with Japan under EPF Act as per announcement through various news papers in Jul, 2016 but we do not find any authentic notification/ circular for effecting this agreement from 01.10.2016 on EPFO website. PF office is also not having any material on the subject. If any member have any such notification then plz provide us.
With Regards,
R N KHOLA

The ammendment in the act is notified in the Gazette.
Once that is done, there is no need for a separate notification to be issued for its implementation. The act is applicable from the date is passed in the parliament provided the president has signed the document.
Dear Mr. Saswata Banerjee,
Thanks for the information. If I understand you correctly, the amendment in the Act will be notified in the Gazette once it is done. Right now, all I could find is about the announcement from the Labour Minister "after the board meeting of ESIC". None of them talk about amendment to the Act or passing of the same by parliament. Since the amendment is not yet passed in the parliament and signed by the President, it is not yet applicable. Is that correct?
1. Sir(s), in this thread we are discussing about enhancement of wage ceiling under ESI Act, 1948 and not discussing about amendment in the said Act. The appropriate Govt. is authorised to enhance the wage ceiling by amendment under relevant rule of ESI (Central) Rules, 1950. For enhancement of wage ceiling under said Act, there is no requirement of prior approval by the Hon'ble Parliament and President. Though after amendment in the relevant rules by appropriate government, copies of such amended rules are required to placed in the Parliament only for kind information of members.
2. So far as I understand, the position regarding enhancement of wage ceiling in EPF & MPs Act, 1952 may be different.
Dear All, Pl provide latest amendment notifications under ESIC act (Sept 2016). Regards S V S
1. Sir, newspaper announcements of ministers etc. are not reliable so far as legal aspects are concerned. The managements/HR officials, in my opinion, as a result of such announcements of Minister are reasonably worried about the notification of enhancements of wage ceiling under ESI Act, 1948 and rules/regulations framed thereunder. I think, HR officials and employers should confirm the position in writing from either appropriate office of ESIC or from Ministry of Labour & Employment, Central Govt.

2. I personally understand that there is system of enhancement of wage ceiling under above Act. (1) firstly ESIC is to recommend to Central Govt. for enhancement of wage ceiling. This step appears to have been completed since there was some meeting of ESIC in first week of September, 2016. (2) the 2nd step is to issue Intention Notification under ESI (Central) Rules, 1950 inviting objections and views of affected parties ( i.e. employers and employees). The intention notification period is for one month and so far the appropriate Govt. i.e. Ministry of Labour & Employment, has not issued said intention notification (this can be confirmed from offices of ESIC/Govt of India as mentioned by me above). (3) after elapse of a period of one month, the appropriate government has to examine the objections received in respect of above intention notification & (4) after examining all the objections and views of affected parties, as mentioned above, the appropriate government is to issue final Gazette Notification. From above, members can see and presume how much time it will take for issue of final notification.

3. In my opinion, if any employers will deduct contribution from the wages of employees, who are not coverable under above Act on account of getting wages exceeding to wage limit, then it will be wrongful and unauthorised deductions so far as the provisions of the Payment of Wages Act are concerned.
Sir,
Employer/Management is asking whether to implement the revised wage limit for ESI eligibility from 1st Oct 2016 or not , but there is no official notification except news paper announcement by Labor Minister. what will be the best. It is better to wait till the notification and other guideline released in ESI website. pl may be given some inputs in this matter.
Sir, Central Govt. has now issued draft notification regarding enhancement of wage ceiling under ESI Act, 1948. Copy of Gazette Notification dt. 06-10-2016 is attached herewith for kind information of members of this forum.

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File Type: pdf Draft Notification dt 6-10-2016 reg enhancement of wage ceiling under ESI Act.pdf (938.8 KB, 412 views)

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