Confused About ESI Eligibility with a 17500 Salary? Let's Discuss How It Works

I need a small clarification. Recently, I got an opportunity as an Assistant Manager in HR for one of the leading companies. The issue is my gross is 17,500/-, but they are asking me to fill out the ESI form. How does it work? As per my knowledge, people who are earning below 10,000/- are only eligible for ESI. Please help me understand.

Thank you.

Employees' State Insurance (ESI) Coverage

As per the Employees' State Insurance (ESI) - Coverage of Employees Act, the new rule states that a monthly wage limit is prescribed by the Central Government for the purpose of covering employees/workers of the aforementioned factories or establishments. An employee has been defined under Section 2(9) of the Act, meaning any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies. The wage ceiling is periodically increased, with the existing ceiling set at Rs. 15,000 per month effective from 01.05.2010.

For more information, please visit this link: http://esic.nic.in <link updated to site home>

Hence, you can verify that if your gross salary after deductions is Rs. 15,000, then your company is compliant.

If your company is asking you to fill out the ESI Form, this means your CTC is Rs. 17,500/- and not your gross salary. Please check this. Your gross salary must be below Rs. 15,000/- per month.