How Will the ESI Wage Ceiling Increase Impact Employees' Social Security?

The ESI Corporation has approved to enhance the wage ceiling from Rs. 10,000 per month to Rs. 15,000 per month for coverage of employees under the ESI Scheme in its 149th meeting held on Friday under the chairmanship of Union Minister of Labour and Employment Mallikarjun Kharge. Union Minister of State for Labour and Employment Harish Rawat and the vice-chairman of ESIC were also present in the meeting.

Keeping in view the increase in the cost of living index and recommendations of the Parliamentary Standing Committee on Labour, the corporation increased the wage ceiling limit for coverage of the employees under the ESI Scheme. This will help the corporation to provide a social security net to more and more employees of the organized sector.

Any comments....

Hi,

From which date was the ESI enhancement of wage ceiling from 10K to 15K effective?

Regards,
D. Ramuu

I think ESIC is looking for more revenue than benefits provided to the employees. ESIC has to improve medical facilities in the dispensaries and hospitals before enhancing the coverage for employees.

Dear All,

Any update on whether this has been notified? If so, from which date is this coming into effect?

Regards,
Lalith Bala

The coverage limit is Rs. 10,000/- effective from 1st October 2006. The said limit has not been enhanced so far.

As for the inadequacy of service, if there is a specific instance, the matter can be taken up.

A. Irudayam
Advocate

Hi all,

We do not have any official notification on ceiling change from 10k to 15k for ESI, and this information is just a proposal and not yet finalized by the Ministry.

Thanks,
Arun Kumar Vijayamoorthy

Tomorrow, a meeting is going to be scheduled between the ESI officials and employers in Orissa, Rourkela. I don't know what the topic of discussion is about; it might be related to this change.

Can you post the government notification and the effective date of implementation if you have received any authorized government order for the revised gross salary limit for the recovery of ESI from gross salary Rs. 10k to Rs. 15k? Can you help with this official circular.

I hope the ceiling is not increased because even though the government has this scheme with good intentions, it is merely a waste of time and money. 90% of the workers do not benefit from this. Additionally, the procedures for medical rebate are very long and tiresome.

Dear all,

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Thanks,
Neelima

Dear Seniors and all HR Professionals,

The ESI wage ceiling raise issue is in parliament for approval, and I hope it will be effectively implemented in April 2010 as per ESI Officials.

Thanks and Regards,

Supriya Sharma
HR Executive

Dear All,

The ceiling has been increased to Rs. 15,000/- and a circular (G.O.) has also been published. I will post in 2 days.

Regards,
Ajay Shukla
Labour Laws Consultant, Kanpur
09839066035