Can Employees Earning Over 15k Still Get ESIC Benefits if They Choose to Contribute?

Dear Members, Employees earning above 15k gross P/M, if willing to contribute for ESIC monthly, will they be eligible for ESIC benefits? Please guide.

Any employee who is earning a gross pay above 15,000 is not eligible for ESI benefits.

There is no scope for any personal option in the provisions of the ESI Act, 1948, and the rules/regulations framed thereunder.

Dear Nagaraj,

There is no provision for ESI contribution if the gross salary is more than ₹15,000. In other words, they are not eligible. However, the ceiling is expected to be increased from ₹15,000 to ₹25,000 soon.

Warm Regards,
Ashfaque Manjar

There is no provision for availing the ESIC benefits if the gross salary (excluding overtime) is above Rs. 15,000/-. If the gross salary minus overtime is above Rs. 15,000, then the employee is not eligible for ESIC benefits.

Regards,
Ashutosh Thakre

I agree with the views expressed by my fellow colleagues. A person employed in a factory or establishment that is covered under the ESI Act and drawing a salary or wages higher than the prescribed limits is termed an excluded employee and hence not eligible for coverage, even if the employee is willing. This is because coverage is not optional for the employee but is based on the ceiling limit of the prescribed salary or wages.

Regards,
RL Dhingra
Advocate, Labour Law Consultant, Delhi
[Phone Number Removed For Privacy Reasons], Email: [Email Removed For Privacy Reasons]

An employee drawing a gross salary of more than ₹15,000 is not eligible for ESIC benefits. However, it is worth noting that the ESIC limit is expected to increase soon, reaching up to ₹25,000 gross per month.

Regards,
Neha
HR (Payroll)
Noida

No, there is no provision under the ESI Act to cover employees earning a salary less than ₹15,000/-. However, any employee who is physically disabled and earns a salary less than ₹25,000/- but more than ₹15,000/- is covered under the ESI Act.

My reply is as follows in this matter:

Any employee who is willing to enroll as an ESI member, even though their gross salary is more than Rs. 15,000/- per month, can request the management to cover them under ESI. If the management is willing to bear the employer's contributions, they can pay to ESI by deducting the employee's contribution up to Rs. 15,000/- only.

For example, if one employee's salary is Rs. 30,000/-, the employee and employer ESI contributions will be paid up to Rs. 15,000/- only.

Dear Mr. Vltreddy999,

I feel that the information furnished by you in your comments above is incorrect and baseless. There is no system of optional coverage under the ESI Act, 1948, and the rules/regulations framed thereunder.

I hope you will consult the above Act/rules/regulations, and if I am wrong, I hope you will mention the provisions of the said Act/rules/regulations so that I may be able to correct myself.

Furnishing incorrect information on this CiteHR, I feel, will lead to misleading a large number of viewers. I hope you will clarify the correct position in your comments by indicating the provisions of the Act/rules/regulations as mentioned above.

I may also further inform you, for your kind information, that incorrect coverage of any person under the ESI Act, 1948, and making them entitled to benefits (to which they are/were not entitled) is an offense punishable under section 84 of the said Act (punishable for both the covered person and the employer).

ESIC Limit and Employee Perceptions

The ESIC limit is not approaching ₹25,000. Every employee earning more than ₹25,000 believes that other medical schemes are better than ESIC.

Regards,
Yogesh
Sr. HR Executive

It is a discussion point and purely my personal opinion. There is no voluntary coverage in ESI as of today, and no benefits are given by ESIC to excluded members.

Thank you.

I agree with the views of Mr. Harish. There is no provision in the ESI Act to pay the contributions up to ₹15,000 even though they are drawing more than ₹15,000. Specifically, the act mentions that those who are drawing ₹15,000 and below will be covered under the act. Mr. Reddy's views on this are not correct.

Regards,
GIRI

He/she can avail of ESIC benefits if they are withdrawing a gross amount of Rs. 15,000 because, as per the ESIC Act, an employee whose gross salary is up to Rs. 15,000 can avail of the benefits of ESIC. However, if the gross salary is Rs. 15,001 or more, then he/she cannot take advantage of ESIC benefits.

Regards,

No option is prescribed and available for optional coverage. The upper limit is 15k, and if increased, it will be 25k.

A person with an increased salary above 15k in the middle of the year is eligible for coverage for the following September or March (Half-Year Closing). After this period, their name and contribution will have to be omitted. However, to the best of my knowledge, they will receive medical benefits for the next six months (Please correct me if I'm wrong!) from the last contribution month.

Best Regards,

Based on my opinion, an employee who is earning above 15k is not eligible for ESIC due to the act. This is because a person earning above 15k is generally capable of paying for hospital expenses. The act was developed based on parameters to distinguish who is capable and who is not. If an employee is earning below 15k, which is considered a low salary, they are not capable of paying additional benefits. Therefore, the act was developed with these considerations in mind. If there are any mistakes, please excuse me, as I am a fresher, and this is my first message. Regards.

I am an employer and have workmen who are on the verge of crossing Rs 15,000 gross salary. If they are not eligible for ESI, how can medical coverage be arranged? Are there any specific mediclaim policies?

Thanks,
Raghuvir

The employee whose salary is more than 15k is not eligible for ESIC. But if, in any particular month, they take leave and due to absences, their salary is less than 15k, then is ESIC applicable to them? Waiting for your valuable suggestions.

Regards

The employee, as mentioned in the example provided, will not be eligible for coverage even if they receive lower wages due to absence or leaves not being sanctioned.

Thank you.

Sir, has the ESIC wage ceiling limit been increased from 15000 to 25000 or not? If yes, please provide the notification. Secondly, can a director of a private limited company or a partner of a partnership be covered under ESIC or not?

Thank you.

1. Sir, so far there is no further enhancement of the wage ceiling from Rs. 15,000/-

2. Kindly inform whether the Director of the company is receiving wages or remuneration? If so, at what monthly rate? As I understand it, partners in a partnership concern are not employees of the firm and, therefore, not coverable.

1. Sir, so far there has been no further enhancement of the wage ceiling from Rs. 15,000/-

2. Kindly confirm whether the Director of the company is being paid wages or remuneration. If so, at what monthly rate? A partner in a partnership concern is not considered an employee of the firm and therefore is not covered under the ESI Act, 1948.

Thank you.