How Will the ESI Salary Coverage Increase to Rs. 25,000 Impact Your Take-Home Pay?

akhilesh dubey
In a bid to widen the social security safety net, the Labour Minister, Mr. Sis Ram Ola, has announced that people drawing a salary up to Rs. 25,000/- shall be covered under the ESI Scheme. Currently, the benefit is available to people drawing a salary up to Rs. 15,000/- only. As per information available, the decision was taken on Thursday, 19th September 2013. The last increase in the salary ceiling for ESI was made in May 2010 when it was raised to Rs. 15,000/- from Rs. 10,000/-. The move would impact the take-home salary of employees currently in the salary bracket of Rs. 15,000/- to Rs. 25,000/-. Furthermore, it would have an impact on increasing the ESI contribution as well as compliance for the employers.
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