Can an Employee Keep ESIC Benefits After Exceeding the Salary Limit? What HR Needs to Know

ESIC Coverage for Employees Exceeding Salary Limit

In my company, one employee is out of the salary limit for ESIC coverage, but he wants to continue his ESI benefits and contributions. He is a Senior Electrician working in our company, and his working profile also requires these types of benefits. The company is interested in continuing his ESIC coverage.

Is it possible to keep a person in ESIC after he is out of coverage due to his salary? If yes, then as an HR professional, what are the formalities and procedures I need to complete to keep him in ESIC?

Thank you.

Warm Regards,
Deepak Agarwal

It is not possible to cover a person under ESI if their salary exceeds the limit. Once an employee is out of ESI, they get covered under the Employees' Compensation Act, and you can take out an insurance policy. For other medical needs, organizations take up medical insurance with limits.

Please remember, the ESI Act does not provide for any voluntary inclusions.

ESIC and Social Security Benefits

ESIC is purely for social security purposes. The workers or employees who are receiving minimum wages and other allowances up to ₹15,000 are benefited. If any worker is earning more than ₹15,000, it means he/she is capable of bearing the medical uncertainty, and he/she can benefit from other medical benefits provided by the company.

Regards,
Yogesh Kanahalli

In accordance with the ESI Act, it will not be possible for you to keep the electrician (employee) covered under the ESI scheme since his salary exceeded Rs. 15,000 per month.

Regards,
Sibabrata Majumdar
Management Consultant Legal & HR
Kolkata, [Phone Number Removed For Privacy Reasons]

As our friends have mentioned, it may not be possible to continue after reaching the wage limit. However, there is no need to worry. The ESI Corporation is planning to increase the wage limit from 15k to 25k, effective from 1st April 2014. If this change is implemented, your problem will be resolved.

Regards,
Alphonse

Dear Sir,

Two or three employees in our organization crossed the salary limit for ESI of Rs. 15,000 during April 2014. However, in the ESI Portal, it is not mentioned that they are out of coverage. What remarks should we make regarding this situation? Please advise on the reason we should mention for not deducting and depositing ESI further.

Your guidance on this matter would be greatly appreciated.

Regards,
R K GOEL
Indfos
[Phone Number Removed For Privacy Reasons]

ESIC Membership Continuation for Insured Persons

In a meeting held yesterday, the ESIC board decided to give an option to existing insured persons to continue their membership even if their wage exceeds the ceiling of Rs 21,000 per month. At present, all those insured under the ESIC scheme lose their membership and insurance cover if their wage surpasses the ceiling. "ESIC has raised the threshold wage limit from Rs 15,000 to Rs 21,000," the Labour Minister told PTI after the ESIC board meeting. The Labour Minister is the Chairman of the ESIC Board.

Regards,
Deepak Agarwal