Salary Increase in January: Will ESIC Issue a New Card for Medical Benefits?

Dear All, I just want to know one thing—if we increase an employee's salary in the month of January but they are still in the ESIC bracket, will a renewed card be issued by the ESIC office, and if so, would it be applicable for medical benefits?

Regards, Pallavi

The card will not change with every change in the salary. If it is for calculating the amount of medical benefits, it will come only in the next benefit period, which comes only after nine months. By that time, the employer would have submitted the half-yearly returns, in which the increase in salary would be reflected.

Regards,
Madhu.T.K

I want to know whether he will be entitled to medical benefits during this nine-month period. Please let me know if you need any further information.

Eligibility for Medical and Sickness Benefits

For medical benefits (free hospitalization and treatment), there is no contributory condition. However, to avail of the sickness benefit, under which an employee is entitled to a cash benefit equivalent to around 60% of their average wages during days of sickness, the employee should have worked for at least 78 days in the preceding contribution period. If they are a new employee joining in the middle of a contribution period, they should have worked at least 50% of the days in that contribution period.

In your case, since the employee is already insured, the question of eligibility for sickness benefit will not arise because they might have already contributed to the scheme. They will continue to receive the benefits. It is only the cash benefit that will change. For that, they may have to wait for the next benefit period to come.

Regards,
Madhu.T.K