How the New ESIC Wage Limit of ₹21,000 Affects Employee Coverage Starting January 2017

In an effort to cover more employees/workers under the ESIC coverage, the government has amended Rule 50 to increase the threshold limit of wages to twenty-one thousand rupees per month. Therefore, any employee/worker who is drawing wages/salary of twenty-one thousand rupees as per the definition of wages of the Act will now be covered under ESIC. This is effective from 1st Jan 2017. Therefore, any employee/worker whose wages are twenty-one thousand rupees per month will now be covered under ESIC, as opposed to the earlier limit of fifteen thousand rupees per month. This will impact a large section of the employee/worker population who will now be eligible for the ESIC benefit.

Do check www.simpliance.in, a free online labor law library for all recent amendments and acts.

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