Final Notification-enhancement Of Wage Ceiling Under E.s.i.act, 1948 W.e.f. 01/01/2017.

Harsh Kumar Mehta
Central Govt. has now issued final notification of enhancement of wage ceiling under above Act to Rs.21000/- per month. The Notification is dated 22/12/2016 and the same is applicable w.e.f. 01/01/2017. The said notification can be downloaded from the website of appropriate Gazette, online link of the same is as follows:
http://www.egazette.nic.in/(S(5jz35w...)/Search1.aspx
THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
However, copy of notification is uploaded also in this thread.
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consultme
Appreciate your effort sir
A few doubts wrt the implementation of wage ceiling and kindly make modifications if the understanding is not correct
1. For Jan 2017 salary payable in Feb 2017, the revised wage ceiling has to come in to effect
2. In the current contribution period, for Nov 2016 and Dec 2016, the contributions follow as per 15000 ceiling
3. If arrears are there till Dec 2016, follow previous wage ceiling only
4. For implementation of the revised wage ceiling, whether employer should wait for specific instructions from ESIC, software readiness etc.
Harsh Kumar Mehta
1. Sir, so far as para 1 is concerned, your interpretation appears to be correct. Wages for January, 2017 are to be paid at the close of month and hence the contribution on revised wage ceiling will be payable from said month and first payment on revised wage ceiling is required to be made by 21st February, 2017 (for January, 2017).

2. Your interpretation in para 2 also appear to be correct.

3. Your interpretation for para 3 also appear to be correct. However, coverage of new entrants to the said scheme is to be examined and watched on the basis of wages as in January, 2017 as defined in ESI Act, 1948.

4. Employer is required to make compliance on the basis of revised wage ceiling fixed as mentioned above. Revision/amendment in ESIC Software, in my opinion, is only a procedural aspect. However, I feel that ESIC authorities are supposed to up-date their software/procedure etc. etc. accordingly well in time or they can issue appropriate instructions. You can seek the help of appropriate Branch Office / Regional/Sub-Regional Office of ESIC to which your unit is attached.
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