ESI Limit Increase: How Will This Affect Your Manpower Costs?

Hi HR Brethren,

This is to inform you that the ESI limit has been increased from 10k to 15k effective from 01st of May, 2010. Please re-calculate the manpower cost and find out the impact which has arisen due to this amendment.

Regards,
Subramanian

Hello Sir,

Could you please provide us with a copy of the amendment from the ESIC Department?

Regards,
Yogender Singh
Sr. Executive HR

Dear Girish,

I still have not received any information from the ESIC department regarding the same. Kindly provide an update on [Login to view].

Warm Regards,
Faruk Shaikh
Sr. Executive - HR
9909953699 & 9998022889
Ahmedabad, Gujarat

Hi,

This news has been in the market for some time, but unfortunately, no one has provided the notification copy. If anyone has it, kindly post the same.

Thank you.

Sorry, I was a bit tied up. Here you go with the notification.

Regards,
Subramanian

Hi Girish,

The attachment you have posted is the proposal to increase the limit of ESI wages. It is issued in the interest of seeking any suggestions or objections from the employers. Please don't mind. I just wanted to correct you. Amendment is not yet published, but will be done soon. Sorry once again.

Dinesh

Hi Girish,

Mr. Dinesh is correct; it is a draft notification only. The notification is yet to be released. Everyone is awaiting the G.O. for implementation.

Kalijanni

Hi,

This is a draft notification only, not the original notification. The original notification has not yet been released by the ESIC.

Regards,
Raghav

Ough.. Got a good response :-)

I received a notification from our statutory consultant stating that the ESI limit has been increased from 10K to 15K. I have also shared the notification with you. We have already begun to assess the statutory impact of this amendment. If I am not mistaken, it is set to be revised on the 1st of May, 2010. I consider this the final notification.

Let's see if there are any further communications.

Regards,
Subramanian

Notification in Official Gazette will take time, but it's only a ceremonial one. We should finally consider that the wage ceiling is enhanced from 10k to 15k w.e.f. 1.4.10 and calculated as per it.

SYAM, ESI INSPECTOR

Dear Friend,

Do you have any official notification or circular for the effective date?

Regards,
Jugal

Dear Seniors and all,

Attached please find the ESI notification for an increase in the limit from 10,000 to 15,000 effective from 01 Apr 2010. Also, a combined new challan for both PF and ESI is attached for your information.

Thanks and regards,
Arun Singhal

Dear Subramanian,

Do you have any circular about this? If so, please send the attachment. When I went to the ESI Office in Hyderabad to inquire about this issue, they were not aware of it. Thank God.

Regards,
V. Venkatesh

Dear All,

Official communication from ESIC to the employer regarding the details of the effective date of implementation has not yet been communicated by the authorities.

Dear Mr. Arun, where is it mentioned as 1st April 2010? Please confirm.

Regards,
K7

Hello,

Why are you confusing others by omitting the final "g"? You are posting items based on draft notifications. As an HR person, we need to guide others.

K. S. Murthy

Hi,

I checked yesterday with the Head office of ESI in Delhi. However, there has been no notification received yet.

Regards,
Lalit

Hi All,

This is a notification for suggestions or objections, but the final order is still pending. Hence, the date of implementation. I checked with ESI Local & Branch Officials, and they are stating that they are yet to receive the final notification. Therefore, for the month of April, the limit is 10,000/-, and the final date of implementation can be received by the first week of May. I will post the same to you when I receive it.

Regards,
Manish Gupta

Hi friends,

The basic wage limit for ESI is ₹8,000 and below. There are two types of contributions in ESI: employer and employee contributions. The employer has to contribute 4.75%, and the employee has to contribute 1.75%.

In ESI benefits, there are numerous benefits available such as sickness benefit, medical benefit, maternity benefit, etc. I will share more information later.

I agree with Dinesh. This is just a draft rule and proposal from people who have been asked. Today, when many organizations have better options to go with private insurance companies for medical and accidental coverage, I don't think the limit should be increased. During my HR career, I have found only 10-15 employees out of 500 going to ESI hospitals and dispensaries.

Hi,

There has been no notification from the ESIC Office regarding the implementation of the new ESIC amount.

Hi Girish,

Thank you for your update posting on the matter. The draft notification will definitely be followed by the publication of the notification after the stipulated period of time, and that period is over. Therefore, the enhancement of coverage limit from 10k to 15k in the form of an amendment will be implemented.

Thank you,
Mahesh Pandey

Dear,

I am sorry to inform you that no notification has been issued by ESIC. It is currently a work in progress and not a declaration. Apologies for any inconvenience.

Kind regards, [Your Name]

Hi all,

Could someone please send me a template for a housekeeping contract? I am in need of one but am unsure how to create it.

Thank you,
Chandan

Dear Mr. Girish,

Please read and understand the contents of the PDF file attached by you. It is a notification calling for objections and suggestions from parties likely to be affected by the proposed amendment in ESI Rules.

Amendment to ESIC Rules is still at the proposal state, and the amendment is yet to be approved and implemented.

I appeal to other members to be more responsible while posting. At least read properly what you have posted.

Thanks & Regards

Dear Mr. Arun,

Please read and understand the contents of the PDF file attached by you. It is a notification calling for objections and suggestions from parties likely to be affected by the proposed amendment in ESI Rules.

Amendment to ESIC Rules is still at the proposal stage, and the amendment is yet to be approved and implemented.

I appeal to either members to be more responsible while posting. At least read properly what you have posted.

Thanks & Regards

Hi,

In fact, nobody is happy with the proposed decision. This is an absolute waste of money. Only less than 10% of people are benefiting from the ESIC. Most of the insured employees don't know the claim procedure.

Regards,
Rahul Vaidya

Hi,

Mr. Dinesh is correct. There is no official notification from ESIC. Everyone is waiting for the same.

Shreepad

Hi,

Actually, no one is happy with the new proposed amendment by ESIC. First, they have to improve their standard of service. Only less than 10% of employees are availing the benefits. Firstly, the government has to survey how many people are availing the benefits. Most of the dispensaries don't have the prescribed medicine, and the behavior of the employees is not so cooperative.

Regards,
Rahul Vaidya

Dear All,

There is a notification attached by Mr. Subramaniam, but it has not yet been declared by the department. Even if it is declared after 6 months, the effective date will be from 01-04-2010 only.

That will be sure.

Uma S.

Yes, I also feel that the notification which Mr. Girish posted is to invite objections and suggestions. We should inquire whether any fraternity has placed an objection or not. This will be a heavy burden on the white-collared job people, especially in ITES where the employees are covered under mediclaim.

Why are all of you unnecessarily worrying about the Final Notification? As I mentioned in my previous reply, it is only a ceremonial thing. No changes will be found in the Final Notification. As an in-house person, I assure you all that the enhancement of the wage ceiling will be effective from 1.4.10. We are also attempting to change the definition of wages to Basic + D.A. like EPF, which is a lengthy procedure. It may take the next 1 or 2 years to finalize. Don't waste your valuable time on this issue; the final notification will be released within 2 weeks.

Vahi dak ke teen pat.

I think there is no notification yet, so everyone can relax. When enforcement comes, it will be published in every newspaper.

Thanks

Dear All,

Please find the notification that the ESIC ceiling has been enhanced with effect from 01-May-2010.

Regards,
Yogender Singh
Sr. Executive HR