Wage Ceiling Increase Under ESI Act: Has the Official Notification Been Released Yet?

Our Honorable Labor Minister has declared the enhancement of the wage ceiling from the current Rs. 15,000 to Rs. 21,000 under the ESI Act for the purpose of coverage of employees, and this is to be effective from 01.10.2016.

Is there any notification to this effect?

Sir, so far, I could not see or find any official notification from the appropriate government on the subject. If desired, you can confirm with the Ministry of Labour & Employment, Central Government. Perhaps this government is conducting its business by solely making various announcements in the newspapers and media.

I also agree with the statement of Mr. Mehta. In a similar case, we see that the government has finalized the SSA with Japan under the EPF Act, as per the announcement through various newspapers in July 2016. However, we do not find any authentic notification or circular to effect this agreement from 01.10.2016 on the EPFO website. The PF office also does not have any material on the subject. If any member has any such notification, please provide it to us.

With regards,

R N Khola

The amendment in the act is notified in the Gazette.

Once that is done, there is no need for a separate notification to be issued for its implementation. The act is applicable from the date it is passed in the parliament, provided the president has signed the document.

Dear Mr. Saswata Banerjee,

Thank you for the information. If I understand you correctly, the amendment in the Act will be notified in the Gazette once it is done. Right now, all I could find is about the announcement from the Labour Minister "after the board meeting of ESIC". None of them talk about the amendment to the Act or passing of the same by Parliament. Since the amendment is not yet passed in Parliament and signed by the President, it is not yet applicable. Is that correct?

Discussion on Wage Ceiling Enhancement Under ESI Act, 1948

Sir(s), in this thread, we are discussing the enhancement of the wage ceiling under the ESI Act, 1948, and not amendments to the said Act. The appropriate government is authorized to enhance the wage ceiling by amendment under the relevant rule of the ESI (Central) Rules, 1950. For the enhancement of the wage ceiling under the said Act, there is no requirement for prior approval by the Honorable Parliament and President. However, after the amendment in the relevant rules by the appropriate government, copies of such amended rules are required to be placed in Parliament only for the kind information of members.

So far as I understand, the position regarding the enhancement of the wage ceiling in the EPF & MPs Act, 1952 may be different.

Dear All,

Please provide the latest amendment notifications under the ESIC Act (Sept 2016).

Regards,
S V S

Reliability of Newspaper Announcements
Sir, newspaper announcements of ministers, etc., are not reliable in terms of legal aspects. Management and HR officials, in my opinion, are reasonably worried about the notification of enhancements of the wage ceiling under the ESI Act, 1948, and the rules/regulations framed thereunder. I think HR officials and employers should confirm the position in writing from either the appropriate office of ESIC or from the Ministry of Labour & Employment, Central Govt.

Process of Enhancing the Wage Ceiling
I personally understand that there is a system of enhancing the wage ceiling under the above Act. Firstly, ESIC is to recommend to the Central Govt. for the enhancement of the wage ceiling. This step appears to have been completed since there was a meeting of ESIC in the first week of September 2016. The second step is to issue an Intention Notification under ESI (Central) Rules, 1950, inviting objections and views of affected parties (i.e., employers and employees). The intention notification period is for one month, and so far the appropriate Govt., i.e., the Ministry of Labour & Employment, has not issued the said intention notification (this can be confirmed from the offices of ESIC/Govt of India as mentioned by me above). After the lapse of a period of one month, the appropriate government has to examine the objections received in respect of the above intention notification, and after examining all the objections and views of affected parties as mentioned above, the appropriate government is to issue the final Gazette Notification. From the above, members can see and presume how much time it will take for the issue of the final notification.

Unauthorized Deductions
In my opinion, if any employers deduct contributions from the wages of employees who are not coverable under the above Act on account of receiving wages exceeding the wage limit, then it will be wrongful and unauthorized deductions concerning the provisions of the Payment of Wages Act.

Sir,

The employer/management is asking whether to implement the revised wage limit for ESI eligibility from 1st Oct 2016 or not. However, there is no official notification except a newspaper announcement by the Labor Minister. What would be the best approach? It is advisable to wait for the notification and other guidelines to be released on the ESI website. Please provide some insights on this matter.

Sir, the Central Government has now issued a draft notification regarding the enhancement of the wage ceiling under the ESI Act, 1948. A copy of the Gazette Notification dated 06-10-2016 is attached herewith for the kind information of members of this forum.

Sir, the Central Government has now issued a draft notification regarding the enhancement of the wage ceiling under the ESI Act, 1948. A copy of the Gazette Notification dated 06-10-2016 is attached herewith for the kind information of members of this forum.

https://www.citehr.com/attachments/1...-6-10-2016-reg

Dear Friends,

I have checked with the ESI Regional Office in Bangalore today. The gazette notification has still not been released.

Thanks and Regards,

Shivaswamy I.K

Our company is Steel & Power Limited. Can anyone help me to determine whether the Enhancement of Wage Ceiling under the Payment of Wages Act, 1936: Notification No. S.O. 2806(E) is applicable in my company?