ESI Eligibility: Does a Salary Increase Over ₹15,000 Affect Coverage?

According to the ESI Act, if an employee's gross salary exceeds ₹15,000 due to increments, is he eligible for ESI?

If an employee's salary increases due to increments or promotions, they are not eligible for ESI benefits. Furthermore, they have to contribute until the end of the half-year period, with deductions limited to Rs. 15,000.

Understanding ESI Contribution and Benefit Periods

As per the Employees' State Insurance Regulations of 1950, a person who becomes an employee within the meaning of the Act for the first time will have their first contribution period commence from the date of such employment in the contribution period current on that day. The corresponding benefit period for them shall commence on the expiry of nine months from the date of such employment. This means that the benefit will start after the expiry of nine months from becoming a member.

Similarly, even if someone is out of the purview of the Act due to an increase in salary (above ₹15,000), they will receive corresponding benefits for the next nine months from such date.