ESI Wage Ceiling Increase: How Will the New Rs. 21,000 Limit Affect You?

Press Information Bureau has announced that the ESI Corporation has approved the enhanced ESI wage ceiling limit from Rs. 15,000 to Rs. 21,000.

Please let me know if you need any further assistance.

Appreciate the immediate updates.

The effective date is not mentioned in this document. However, it is normally effective from publication in the Gazette.

It is the press release of a statement given by the labor minister in the parliament and not the notification, which would affect the date of activation. In this respect, the notification would be issued by the labor department in the gazette with a prospective date. Let us wait for the notification.

Good to see the update. But any idea whether the current contribution period (in fact all companies would have paid for Oct before 21 Nov) gets affected with this. Can ESI make it with effect from the Nov month?

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Good to see the update. However, do you have any idea whether the current contribution period (in fact, all companies would have paid for Oct before 21 Nov) is affected by this? Can ESI implement it with effect from November?

No, it cannot be effective from a backdate. It may take effect either from December or January next year.

To the best of my knowledge, the enhancement will be effective from April 1, 2017 and not in between.

1. Sir, I think that to issue the final notification on the enhancement of the wage ceiling, the appropriate government will take some time even after the elapse of a period of 30 days. The said period of 30 days elapsed on 06/11/2016. The appropriate government will examine the views and objections of the affected parties/persons and thereafter will consider issuing the final notification.

2. For example, the intention notification for the last enhancement of the wage ceiling (present ceiling of Rs. 15,000/-) was issued on 27/2/2010, and its final notification was issued on 20/4/2010 and made applicable w.e.f. 01/05/2010. It will be more appropriate if the interested persons contributing to citeHR may continue to keep in touch with the nearest ESIC office to stay informed about any developments.

3. In my opinion, it is baseless to suggest that "the enhancement will be effective from April 1, 2017, and not in between" as suggested by one of the members above. The earlier enhancement of the wage ceiling was w.e.f. 01/05/2010, which was not a base month of the relevant contribution period.

Please let me know if you need any further assistance with this text.

Attention Mr. Harsh Kumar Mehta, I suggested the application in April 2017. I request you to go through the details I have provided. I cited justice as the reason for my suggestion.

Secondly, there is no chance for applicability from November, as the salaries and ESI contributions for November have already been paid. Therefore, let's wait until 30th November 2016. If a notification is issued by then, it may be applicable from December. Otherwise, the highest chances are for applicability from April 2017.

Dear Mr. Mehta,

I have visited our nearby ESIC office, who are of the opinion that the notification will take some more time. Looking at the current scenario of demonetization, it is assumed that the notification will probably be issued in December/January with applicability from April 2017, as mentioned by Mr. Anand. In my reply to the thread, I have written that, to the best of my knowledge, it is just my viewpoint/opinion.

ESIC notification on wage ceiling limit increased from Rs. 15,000 to Rs. 21,000.

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Sir, please provide or update the ESIC final notification of the wage ceiling from Rs. 15,000/- to Rs. 21,000/-.