Can I Get ESIC Benefits for My Family if My Salary Exceeds 10,000? Seeking Advice

Greetings to respected seniors, I hope you will kindly provide me with information regarding ESIC. I am working as an HR executive in a service company. I would like to know whether it is possible to receive ESIC benefits from my organization even if they pay me more than 10,000. I need this facility for my family's sake, so kindly inform me if I am eligible for this benefit. Regards

I think, as per the act, you are not eligible for ESIC.

I would also like to know if there is a provision for voluntary membership. The reason it is denied is that the person is also eligible for payment of leave salary from ESIC, which the corporation wishes to cap.

Waiting for an expert opinion on this.

Eligibility for ESI Act Coverage

The ESI Act covers an employee drawing wages up to Rs. 15,000/- per month. Thus, you are eligible, provided your company is covered by the ESI Act.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Dear seniors, Thank you so much for your kind information. I still have a small doubt, please clarify. My company provides staffing solutions, both permanent and contract, to our clients. They are going to provide me PF from this month, January. So, can I ask them to provide ESIC? If so, how can I proceed to ask them further? Is ESIC providing a company policy or a company wish?

Best regards,
Sravani

Understanding ESI Compliance

ESI provision is neither a company policy nor a company wish; it is a mandatory compliance requirement. If your gross salary is less than ₹15,000, then you are eligible for ESI, and the company has no option but to pay ESI contributions.

Thanks

It is compulsory to pay ESI contribution if the Gross Salary is less than ₹15,000 per month. The contribution by the employee is 1.75% of the Gross Salary, and the contribution by the employer is 4.75%.

If you need more clarifications, please contact Laxmi at [Phone Number Removed For Privacy Reasons].

Thank you.

Please check your salary slips for any deductions of ESIC from your salary. If there is a deduction, it means you are already covered, and your contribution is being paid. Kindly request your company's HR to provide you with the ESIC temporary card. Take this card to the nearby ESIC office along with your family members who are covered under the scheme to get a permanent card issued. Once the permanent card is made, you will not need to apply for it again, even if you leave this company and join elsewhere. The same card will remain valid as long as you are eligible for ESIC coverage, which currently stands at Rs. 15,000, as rightly mentioned. There is a proposal pending with the government to increase this limit to Rs. 18,000, but as of now, it remains at Rs. 15,000.

I hope this information helps to resolve your query.

Best regards

Oops! Sorry, my mistake. I thought his salary was above $15,000. Can a person with a salary above $15,000 opt for ESIC?

As per the present ESI Law, if the gross salary is above 15,000, individuals are not eligible for ESI benefits. However, ESI is enhancing the gross up to 18,000, but this change will be applicable from May 2013.

This is for your information.

Regards,
Laxmi
[Phone Number Removed For Privacy Reasons]

I am really surprised by your question because, as an HR executive, why are you asking this question? You should advise the management that those who are earning Rs. 15k and below should be covered under the ESI scheme. That is also your right.

Regards,
V. Subbarao

[QUOTE=sravaniy;2019508]Greetings to respected seniors,

I hope you will kindly provide me with information regarding ESIC. I am working as an HR executive in a service company. I would like to know whether it is possible to receive ESIC benefits from my organization even if they pay me more than 10,000. I need this facility for the sake of my family, so please let me know if I am eligible for this benefit.

Hi Sravaniy, as stated by many seniors here, any employee whose salary is less than 15K pm is liable for ESIC, even if they are willing to take it or not. It's statutory by the Government of India. 1.45% of your salary is deducted, and 4.75% would be contributed by your company.

All the ESIC work is online now, and you only need to visit the ESIC office when you have to get photographs clicked and fingerprints scanned. Also, as you mentioned that you need ESIC for family purposes, you need to take your family members to the office, whom you want under this scheme, for the ESIC formalities. You would also need to bring an affidavit mentioning that your family is dependent on you.

Hope this helps! As an HR professional, you must be clear with all these details as you will be responsible to the auditing people and employees if enquired.

Best Wishes, Axita