Am I Eligible for ESIC Coverage with My Current Salary and Benefits Package?

Respected senior members,

I am a 2007 MBA pass out and I have just joined an FMCG company on July 7, 2007. Actually, they have 6-8 companies, and they have placed me under one company. Even though I will be handling HR work for all the companies, my CTC is 1.2 LPA, and my employers have informed me that I will be covered under a mediclaim policy, and the entire contribution for the mediclaim will be paid by the company. I haven't received my mediclaim card yet. I just wanted to know if I will be covered under ESIC since the limit has been raised from Rs 7500 to Rs 10,000.

It would be really helpful if someone could shed some light on this matter.

Thanks and regards,
Abha Dabral
dabral.abha@gmail.com

Dear Dabral,

Greetings!

The wage ceiling for coverage under the ESI Act has been enhanced from Rs. 7500/- to Rs. 10,000/- per month w.e.f. 1.10.2006. Accordingly, all employees whose salary, excluding remuneration for overtime work, exceeds Rs. 7500/- but does not exceed Rs. 10,000/- per month, would become coverable under the ESI Act, w.e.f. 1.10.2006.

An employer can opt for a MEDICLAIM Policy instead of ESI. However, the organization must have 20 or fewer employees.

Rgds,
John N

Thank you very much for the prompt response. Yes, they have informed me that I will be covered under mediclaim. So, if a company is providing mediclaim, it won't be covered under ESIC, right? Just wanted to be sure.

Let me rephrase my earlier question. If the number of employees in the company becomes more than 20 in, let's say, a couple of weeks, then will the company have to change from mediclaim to ESIC? Will I be covered under ESIC? I am sorry if I am repeating myself, but I seriously don't want to get into the ESIC trap.

Dear Friend,

Please do not confuse ESIC with Mediclaim. ESIC is a statutory compliance requirement for employers with 20 or more employees within a specific geographic area. It mandates coverage for all employees receiving a gross salary of up to 10,000 INR per month (ensure it is the gross salary).

On the other hand, Mediclaim is entirely at the discretion of the employer to provide. It can be extended to employees covered under ESIC or not. It is primarily the employer's responsibility, and most organizations do offer Mediclaim coverage to employees earning a salary of 10,000 INR and above.

Regarding your query about the company expanding to more than 20 employees, if this happens in a couple of weeks, the company may need to switch from Mediclaim to ESIC. Whether you will be covered under ESIC will depend on the company's decision. I understand your concern about ESIC, and I want to ensure you have all the information you need.

If you have any further questions, please feel free to reach out to me at [Login to view].

Best regards,
Abha Dabral

Dear Dabral & Sandeep,

Greetings!

To my knowledge, if an employer doesn't have the strength of 20 or more employees, they can opt for a MEDICLAIM POLICY or GROUP INSURANCE through the Workmen's Compensation Management Act.

If this information is incorrect, please clarify.

Regards,
John N

Respected members, greetings to one and all!!

So, if I don't want to fall under ESIC, I will have to talk with the MD to increase my salary from 1.2 lacs, right? Any suggestions as to how to start the conversation? It's not even one month since I joined this company.

Regards