Is an Employee Earning 15,000 Eligible for ESIC Coverage? Let's Discuss

ganesh_cool
Hello friends, if an employee is drawing a gross salary of 15,000, is he covered by ESIC or not?

Thanks
saiseven
He is covered, provided his salary includes all those emoluments paid to him every month and excludes any payments made to him at intervals of more than two months.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
Sakthi Sukumar
Sai, what you quoted is the first time I heard it. Even the ESIC professionals said that if the amount is more than ₹15,000/-, then the employees won't come under ESIC, right? Can you clarify that?

Ganesh, if you can pay more than that amount, it means the employees don't need to be covered under ESIC.

Regards, Sukumar
adityavadapalli
As per my knowledge, if the gross salary is 15k, the employee is covered under ESIC. However, if the gross salary exceeds 15k, even by 1 rupee, for example, 15001, the employee won't be eligible for ESIC. You can enhance your understanding of ESIC by referring to the attached file.

Thanks and Regards,
ADITYA
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malikjs
No doubt, if the gross salary is up to 15k per month, then the individual has to be covered under ESIC.
chaitalimerchant2003
Hello Malikji, what you have mentioned is indeed the correct concept. Any employee whose gross salary is above Rs. 15,000/- is eligible for ESI deductions from their salary, as well as company contributions. 1.75% of the gross salary is deducted from the employee's salary, while the company contributes 4.75% of the gross salary.

Regards, Chaitali
Saunee
If someone's gross salary is equal to or less than Rs. 15,000, then the person should be covered under ESIC, not in the case of salaries above Rs. 15,000. The gross salary should include all regular deductions made from the employee's contribution. I hope this clarifies things.
vijay dere
Yes, he will be covered under ESIC. An employee who is employed for wages up to Rs. 15,000, excluding overtime, will be covered.
chaitalimerchant2003
Yes, yes, it is less than or equal to ₹15,000. My mistake, I wrote "above" instead of "less than."
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