Is ESIC Required for Employees Under Rs. 22,000, or Can We Offer Better Private Insurance?

Is ESIC mandatory for employees earning less than Rs. 17,000 a month, or can a company provide them with private insurance? We have been covering our janitorial staff with private insurance for the past 3 years - ever since we started operating the company in India. Now, we're being told by our accounting consultant that ESIC is mandatory for staff earning under Rs. 22,000. Okay, but is there an issue if we provide them with better coverage than what ESIC will provide?

If your establishment is covered under the ESI Act, then you have to pay it. The salary limit is Rs. 21,000/-. You can apply for an exemption from the appropriate government if you are providing better facilities than ESI.