How Can We Retain Net Salary After ESIC Ceiling Increase? Seeking Advice and Notifications

Dear Sir/Madam,

I worked out the payroll statement for the ESIC revised ceiling, which affects their current net take-home salary. I suggested to my higher officials to retain the net take-home salary for the employees, but he asks for any notifications that we have to retain the same.

Request to share if any notifications or advise any alternative to retain the net take-home amount.

Thanks,
Meena

Dear Meena,

There is no notification to retain the net take-home salary. Management can plan to retain the take-home wages to motivate the employees.

The employer's contribution of 4.75% is an additional overhead for the employer, so the employee can bear 1.75% to avail any medical benefits. It is better to prepare a detailed presentation and explain the same to the employees regarding the benefits of the employee by just paying 1.75%.

Thank you.

Guys think in terms of CTC. The company has a fixed CTC for an employee. If the company is not ready to bear the extra cost, what would be the consequence?

It's nothing but ESIC is only thinking of its profitability. If not, it could have extended the exemption limit of daily wage, which is now Rs-100. At least if they are thinking about employee benefits, they could have waived off the employee contribution for low-paid staff. But they didn't.

Exemption limit is not Rs 100. Now it is Rs 137 per day. This was notified by the Government of India.

This is a request to Mr. Varghese Mathew. Sir, can you please share the notification for increasing the exemption for daily wage limit from 100 Rs to 137 Rs. The ESI official here says that there was a proposal to increase it to 137 Rs, but it is yet to be implemented.

The wage was increased to Rs. 137 per day by the Government of India Gazette notification G.S.R. 598(E) dated 14.6.2016, Ministry of Employment and Labour.