ESI Coverage: How Long Can You Get Treatment After Salary Exceeds Rs. 15,000?

An employee under ESI scheme, when he reaches a salary of Rs. 15,000/- gross and after stopping the contribution, for how many months can a person take treatment in ESI?

Thank you.

Dear Krishnan,

In case the wages of an employee are increased from a retrospective date resulting in crossing the wage limit prescribed, its effect on the coverage of that employee is only after the expiry of the Contribution period. The contribution on enhanced wages is also payable from the month in which such an increase is announced. There is no need to pay the contribution on the arrears for the period prior to the month of declaration/announcement/agreement.

Hi Vijay!

In the above discussion, you mentioned that the expiry of contribution means April to September and October to March, right? After the completion of the contribution, employees can't avail ESIC benefits, correct?

Hi,

After the benefit period for the year is over, the employee cannot avail of the ESI benefits.

Dear N Krishnan,

There is a contribution period (from April to September) and a benefit period (October to March). Once any employee has entered the contribution period and ESI was deducted from the salary, then ESI must be deducted irrespective of salary till the end of the period. The person can benefit from the benefit period until the benefit period ends for the cycle where the employee has contributed.

Regards, Ramya

Sir,

For the contribution period of April to September, the corresponding benefit period is January to June of the next year. The benefit period starts after the completion of 3 months from the date of the closing of the contribution period. If the salary of the employee exceeds ₹15,000, he needs to contribute until the end of that contribution period on enhanced wages. He can avail benefits until the end of the corresponding benefit period.

N. Lokanadha Babu
Manager