ESI Benefit Period: What Happens When an Employee's Salary Exceeds Rs. 15,000?

Dear Friends,

This is regarding the ESI benefit period after stopping ESI contributions. The employee has now exceeded the ESI wage limit, i.e., crossed Rs. 15,000/-. It is expected that they will be under the benefit period for the remaining nine months, from April to December 2011. Please correct me if I am mistaken.

Regards,
P V Rao
[Email Removed For Privacy Reasons]

Please provide the benefits of ESI contribution after crossing the limit of Rs. 15,000. How long can an employee take advantage of ESI hospital benefits?

Thank you.

Understanding ESIC Contribution Periods

As per the ESIC Act, the period of contribution is divided into two parts:

1. April to September
2. October to March

Any employee whose wages are revised during these contribution periods and whose wages have crossed a gross limit of ₹15,000 shall continue to contribute towards the ESI scheme until the end of the period.

For example, suppose an employee is under the ESI bracket in April 2011, and his wages are revised in May 2011, exceeding the limit of ₹15,000. Regardless of the fact that his wages are revised, he will be covered under ESI until September 2011. Both the employee and employer will have to contribute until September 2011 based on the revised wages.

Similarly, if an employee is under the ESI bracket in March 2011 and his wages are revised in April 2011, exceeding the limit of ₹15,000, he does not need to contribute towards the ESI scheme as the contribution period of October to March is over.

Regards,
Kumar Anand
HR - SAMSUNG