In the light of some confusing interpretations on the coverage of employees for ESI benfits,I would like to refer to Sec.2(9) which defines an 'employee' for the purpose of coverage. As per the said definition, every person employed for wages whether directly by principal employer or indirectly through a contarctor or let on hire to the principal employer to do the work of an esatblishment or any work connected with that of the establishment is eligible to be insured for ESI benefits. However the said subsection(9) of Sec.(2) excludes the following persons from the definition of 'employee' which in other words means excluding them from the coverage of ESI.
a) A member of the armed forces;
b)Any person whose wages(excluding OT) exceeds the wage limit fixed by Centarl Government and Central Government ha sfixed the wage limit under ESI rule (50) at Rs. 15000/- p.m( which is likely to be revised to Rs.25000/- as it is learnt).
Provided that whose wages exceed the wages so fixed by Central Government which is now Rs.15000/-p.m at any time after the beginnig of the contribution period, shall continue to be an employee(for the purpose of coverage) till the end of teh contribution period.
To sum up the meaning of sec.2(9) of the ESI Act read with Rule 50 of ESI Rules is that an employee whose wages exceeds Rs.15000/p.m at the beginning of the contribution period is excluded from the coverage but if his wages excceed at any time after the beginning of teh contribution period( in the middle of teh contribution period), he will continue to be covered till the end of teh contribution period only.
This is what the Act and rules say.
B.Saikumar
HR & Labour La wAdvisor