Harsh Kumar Mehta
Consultant In Labour Laws/hr
Senior Manager- Admn
Hr Consultant
Labour Law Advocate
+1 Other

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In Paper news shows ESI give an option to employee to continue his membership even if he/she getting more than wage ceiling delared by ESI wages . Both are amendment from 01.10.2016 but the notification is effect currently announced 21000 w.e.f 01.01.2017.
What happen the option of employee choose for continue in his membership not avail in the notification . where it is applicable or nor.

query is not yet clear
IP has continued his membership and in between the gross salary of 15000 and 21000 ? and paying 1.75% or employee share + 4.75% of employer share ..........if this is scenario then they have to continue just.
majority of employees have been put off from ESIC due to exceeding the limit of gross wages, 15000/- now they have to re-enroll again and start paying contributions.

Sir, coverage under ESI Act, 1948 is not optional. As I understand, no such notification was issued by the appropriate government allowing such employees ( who are/were getting wages exceeding to coverage limit ) to continue his/her coverage under said Act. If any of the employer has done so, in my opinion, such coverage is erroneous and deductions from wages illegal and unauthorised.
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.
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.
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.
Both the decisions will be implemented from October 1.10.2016
But the Act Come effect from 01.01.2017 . In Gazette notification few days back on Dec'2016 . But no information about the Existing insured Employee option to continue his member ship even wage breaches th eceiling .

What you have quoted is only Press Note from the Minister concerned. The final Notification is silent about the Optional clause. Hence all the employees whose salary is equql to or less than Rs 21000/- should be coverred under the ESI Act w.e.f 01-01-2017.

As far as my knowledge is concerned is concerned, w.e.f 01.01.17, the ceiling limit is Rs.21000/- for applicability of the Act and voluntary coverage is not allowed unlike PF.
Dear All
I can't understand that after strike by trade union,it has been effected that central worker wages celling will be grow, but any workers,work under CLA then will be grow wages celling of Contract worker and ESI new notification will be effected on CLA.

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