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Dear Forum Members,
I heard some where, that there is a new amendment is ESIC eligibility
i.,e Female staff getting gross > 50,000/-PM will be now covered under ESIC.
Please provide the inputs, if really any amendment is done recently.
Awaiting for response
Thanks

Hi Partner,
I think this news either might be fake or there may have been some mistake, when it had been conveyed across.
For ESI eligibility it is true that the monthly gross would have to be less than 21K and the current employee contribution is at 1% of the monthly gross. If there is any additional payment like a shift allowance payment, for the particular month the employee contribution could be calculated on this component as well even if the gross shoots up beyond 21K.
But for a regular monthly gross salary of more than 50K per month, it doesn't make sense to add an ESI benefit. This could also result in a minimum deduction of Rs.500/- and more considering the 1% deduction from the employee's side and Rs.2000/- and more at 4% from the employer's side. The cost impact coudl therefore be high on a negative side for both the employee and the employer and at the same the total ESI fund pool at the state and national levels could also get distributed unevenly among those who actually need it and do not need it.
I think it may be better to discard this news.

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