Understanding ESIC Eligibility: How Overtime and Absenteeism Affect Coverage and Benefits

ESIC Ceiling Limit and Eligibility Queries

As the ceiling limit for ESIC is up to ₹15,000 gross wages, above which ESIC is not applicable, I have a query regarding this.

Case 1: Overtime Impact on ESIC Eligibility

If a person has gross wages up to ₹14,500, and in any given month, his gross wages exceed ₹15,000 due to overtime or any special allowances, are we supposed to calculate his ESIC, or is he exempted?

Case 2: Absenteeism Impact on ESIC Eligibility

Conversely, if an employee has gross wages up to ₹16,000 but, due to absenteeism, his gross wages fall below ₹15,000, should we calculate his ESIC?

ESIC Benefits and Eligibility Periods

Apart from this, when a person's name is added to the company payroll, what are the specific periods of service required to get various benefits under the ESIC Scheme? For example, only after the completion of 9 months is a person eligible for leave privilege. Similarly, are there any other schemes to take advantage of ESIC privileges?

Waiting for your responses.

Best Regards,
Ronnie Francis

Related to your queries:

Case 1: If a person has gross wages up to ₹14,500, and in any particular month, if his gross wages exceed ₹15,000 due to overtime or any special allowances, are we supposed to calculate his ESIC, or is he exempted?

Answer: You should consider his gross wages up to ₹14,500 for ESIC deduction. Do not include any extra payments for ESIC deduction.

Case 2: Conversely, if an employee who has gross wages up to ₹16,000, but due to absenteeism, his gross wages fall below ₹15,000, should we calculate his ESIC?

Answer: Please do not consider anyone whose gross exceeds ₹15,001. As per your question, if a person's gross is ₹15,001 and above, they are not eligible for ESIC, even if they earn ₹10,000, ₹11,000, ₹12,000, etc., in a month.

Regards,
Ashwin.

Welcome, Ronnie. If there is anything related to ESIC or PF, please do ask, and I will provide you with the necessary details and updates.

Regards,
Ashwin

On an immediate basis, we have to admit him to the ESIC hospital (if he/she is not in an emergency). Otherwise, in case of an emergency where he/she is admitted to any hospital, the employee should inform the employer immediately. The employer should then visit their registered ESIC office and explain all the details of the situation to them.

Regarding documents, there is no need to carry any to ESIC. Just provide the employee's TIC (temporary identity card) through which the employee will receive benefits.

Regards,
Ashwin

Thank you once again. Could you explain to me about the contribution cycle, such as from April to September and then from October to March? Why is it half-yearly? What is the concept all about?

Regards,
Ronnie

Could you please explain the contribution cycle in ESIC to me? I am eagerly awaiting your reply.

Regards, Ronnie

Yes, of course.

ESIC Period is as follows:

Regarding Contribution:

CONTRIBUTION
The employee's contribution rate (w.e.f. 1.1.97) is 1.75% of the wages, and that of the employer's is 4.75% of the wages paid/payable in respect of the employees in every wage period.

REGARDING CONTRIBUTION PERIOD AND BENEFIT PERIOD:

There are two contribution periods, each of six months duration, and two corresponding benefit periods, also of six months duration, as under:

Contribution period:
1st April to 30th Sept.
Corresponding Cash Benefit period:
1st January of the following year to 30th June.

Contribution period:
1st Oct. to 31st March
Corresponding Cash Benefit period:
1st July to 31st December of the following year.

Thanks & Regards,
Ashwin

Thank you, Mr. Ashwin. My name has been on the Muster Roll since 02-01-2012. When would I be eligible for ESIC Leave Privilege benefits? This means that when I am on ESIC leave, I would receive cash for a particular number of days as prescribed by the ESIC dispensary doctor. I need to become medically fit to resume my work.

Thanks and Regards,
Ronnie

REGARDING - CONTRIBUTION
The employee's contribution rate (w.e.f. 1.1.97) is 1.75% of the wages, and that of the employer's is 4.75% of the wages paid/payable in respect of the employees in every wage period.

REGARDING CONTRIBUTION PERIOD AND BENEFIT PERIOD
There are two contribution periods, each of six months duration, and two corresponding benefit periods, also of six months duration, as under.

Contribution period Corresponding Cash Benefit period
1st April to 30th Sept. 1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following.

Thanks & Regards,
Ashwin.