How Will the New ESIC Wage Limit Affect Your Health Insurance Coverage?

News Update on ESIC Coverage Changes

The Employees' State Insurance Corporation (ESIC) has recently raised the monthly wage threshold to Rs 21,000, up from the previous Rs 15,000, for coverage under its health insurance scheme. In a meeting held yesterday, the ESIC board also decided to allow existing insured persons to continue their membership even if their wages exceed the ceiling of Rs 21,000 per month.

Currently, individuals insured under the ESIC scheme lose their membership and insurance coverage if their wages surpass the ceiling. "ESIC has raised the threshold wage limit from Rs 15,000 to Rs 21,000," the Labour Minister announced after the ESIC board meeting. The Labour Minister serves as the Chairman of the ESIC Board.

Both decisions will be implemented from October 1. Dattatreya mentioned that raising the threshold will help bring an additional 50 lakh members to ESIC. Currently, ESIC has 2.6 crore insured persons, covering over 10 crore people, assuming four members per family.

The minister also indicated plans to increase the wage threshold for retirement fund body EPFO subscribers, which may be considered in the next meeting of the Central Board of Trustees (CBT). At present, the wage threshold is Rs 15,000 per month for coverage under its social security scheme.

The notification is yet to be published but is expected this month, providing a clearer understanding.

Warm Regards,

Praveen Devadiga

Is there any Gazette copy of ESIC amendment from 15000/- to 21000/-? If you have it, please share. Everyone says it is to take effect from 1st October 2016, but the Gazette has not been released.

Sir, it appears that the concerned government has not so far published an intention notification regarding the enhancement of the wage ceiling under the said Act. If required, you can contact the nearest office of ESIC or the appropriate government, i.e., Ministry of Labour & Employment, Central Govt., to confirm the position.

This is just a proposal. The gazette is yet to be released by the Government of India after approvals.

shafeeul

No circular has been received from the ESIC department to date. It was just a proposal.

Yes, it's just a proposal. Unless we receive the gazette from the Government of India (GOI), we cannot implement it with effect from October '16.

In our earlier gazette notifications, the enhancement of wages limit under the ESIC legislation is prospective, not retrospective. Hence, any gazette not published before 30.09.2016 can be treated as not implemented, and you can continue to recover ESIC Contribution on Rs. 15K only for the next six months.

Dear Seniors,

Has any notification or Government Order been published regarding the recently enhanced ESI wages limit from Rs. 15,000 to Rs. 21,000? Please share if it has been published.

Please confirm, till now we haven't received any notification or GO for proceeding. Now, what should we implement - 15,000 or 21,000? Please clarify.

Please find attached the draft notification.

The wage limit for coverage of an employee under sub-clause (b) of clause (9) of Section 2 of the Act shall be twenty-one thousand rupees a month. The said draft rules will be taken into consideration after the expiry of a period of thirty days.

Hello all,

Please find the press release related to ESIC. Soon, the ESIC will release a new notification.

The date of applicability is not clear. Everyone says it is effective from 1st October 2016, but the Government Order does not specify the exact date.

Please confirm from which month the new wage limit of ESIC will be applicable.

Regards,

Nisha

I have been informed that a notification was received yesterday regarding an increase in the wage ceiling of ESIC from 15000 to 21000. Could you please update us on the current status?