Should We Keep ESI for an Employee Earning Over Rs.16,000 in Category D?

Dear Sir,

One employee has an ESI number. Currently, he is drawing a salary of Rs.16,000 per month and is classified under Category D. Should we retain the ESI number or provide a different type of medical facility? Please advise on the necessary details.

Thank you,
Sudarshan

1. Sir, please clarify what "D Category" means as mentioned in your previous post. The category or designation is irrelevant regarding coverage under the ESI Act, 1948, and the rules/regulations framed thereunder.

2. Coverage under the ESI Act, 1948 is mandatory. An employee whose wages exceed the coverage limit (excluding OT) is required to be excluded from coverage starting from the next contribution period.