ESI Membership Beyond Wage Ceiling: What If the Option Isn't in the Notification?

In paper news shows ESI gives an option to employees to continue their membership even if they are earning more than the wage ceiling declared by ESI. Both amendments are effective from 01.10.2016, but the notification currently in effect is for 21000 w.e.f. 01.01.2017.

What happens if the option for employees to choose to continue their membership is not available in the notification? Is it applicable or not?

Query is not yet clear.

IP has continued his membership and in between the gross salary of 15000 and 21000, paying 1.75% of employee share + 4.75% of employer share. If this is the scenario, then they have to continue just.

The majority of employees have been put off from ESIC due to exceeding the limit of gross wages, 15000/-. Now they have to re-enroll again and start paying contributions.

Sir, coverage under the ESI Act, 1948 is not optional. As I understand, no such notification was issued by the appropriate government allowing such employees (who are/were getting wages exceeding the coverage limit) to continue their coverage under the said Act. If any employer has done so, in my opinion, such coverage is erroneous, and deductions from wages are illegal and unauthorized.

ESIC Raises Wage Threshold for Health Insurance Coverage

The Employees' State Insurance Corporation (ESIC) today raised the monthly wage threshold to Rs 21,000 from the current Rs 15,000 for coverage under its health insurance scheme. "ESIC has raised the threshold wage limit from Rs 15,000 to Rs 21,000," Labour Minister Bandaru Dattatreya told PTI after the board meeting of ESIC here. The Labour Minister is the Chairman of the ESIC Board.

In a meeting held today, the ESIC board also decided to give an option to existing insured persons to continue membership even if their wage breaches the ceiling of Rs 21,000 per month. Both decisions will be implemented from October 1, 2016. However, the Act comes into effect from January 1, 2017. A Gazette notification was issued a few days back in December 2016, but no information was provided about the existing insured employees' option to continue their membership even if their wages breach the ceiling.

Dear Mr. P SELVAPAND,

What you have quoted is only a Press Note from the concerned Minister. The final Notification is silent about the optional clause. Hence, all employees whose salary is equal to or less than Rs 21,000 should be covered under the ESI Act with effect from 01-01-2017.

As far as my knowledge is concerned, w.e.f. 01.01.17, the ceiling limit is Rs. 21,000 for the applicability of the Act, and voluntary coverage is not allowed, unlike PF.

Dear All,

I can't understand that after the strike by the trade union, it has been affected that the central worker wages ceiling will grow. However, any workers working under CLA will then see a growth in the wages ceiling of Contract workers, and the new ESI notification will be effective on CLA.

Regards,
Digamber