Exceeding ESI Salary Limit: How Can Labourers Access Medical Benefits Without Extra Costs?

Dear Members,

What is the best course of action if a labourer (Contractual or Permanent) exceeds a gross salary of Rs. 15,000 (crossing the ESI limit)? How can the labourer access medical benefits similar to those provided under ESIC without increasing company costs? Please advise.

Medical Insurance vs. ESIC Benefits

In my knowledge, no medical insurance will provide better medical facilities than what the ESIC can offer at such a low cost as is met in the case of ESI. From the employees' perspective, this holds true because no insurance company will cover an existing disease or a person aged 65 or 70. Under the ESI, there are no such conditions, and dependents of employees, even those aged 100, can receive medical benefits from ESI Hospitals.

For treatments, etc., you can opt for a good mediclaim policy, even though it may cost the company more than the ESI contribution. Additionally, an accident policy to cover loss of income would be beneficial. The loss of income should be based on the average wages of the workers, and consequently, the premiums will increase.

Regards, Madhu.T.K

Dear Imsudu,

There is no option with you similar to PF to cover or continue covering any employee beyond the salary threshold limit. You must de-cover such employees once they cross the salary threshold limit at the end of the contribution period.

There is no scheme better than ESIS, as stated by Madhuji.

There is a proposal to increase the salary threshold limit to Rs. 25,000/-.

Most of all, cover such employees under Employee Compensation policy. Your whole liability for possible accidents will be covered.

Nothing comes free in life; there is always a cost associated with such decisions.