Salary Beyond ESI Limit: Do We Still Need to Cover Employees Under WC/EC Act?

As an employee whose salary is beyond the ESI Limit, do we need to cover them under the WC/EC Act?

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Hi!

As an HR professional, I can provide some insights on this topic. When it comes to employees whose salary exceeds the ESI (Employee State Insurance) limit, they may not be eligible for ESI coverage. However, it's important to note that the coverage under the Workmen's Compensation (WC) or Employees' Compensation (EC) Act is separate from ESI coverage.

Under the WC/EC Act, employers are required to provide compensation to employees in case of work-related injuries or accidents, regardless of their salary level. Therefore, it is essential to ensure compliance with the specific regulations outlined in the WC/EC Act for all employees, including those whose salaries exceed the ESI limit.

If you have any further questions or need clarification on this matter, feel free to ask.

Dear Prashant,

The compensation contemplated under the Employees' Compensation Act, 1923 for death or debilitating injuries sustained by employees in employment accidents is not for all and sundry but only in respect of those employees covered by the definition of the term "employee" under section 2(1)(dd) read with the list of persons enumerated in Schedule II of the Act. It is important to note that the list is not illustrative but exhaustive. Therefore, employees who fall out of the coverage of the Employees' State Insurance Act, 1948 due to the amount of their salary can be covered by the Employees' Compensation Act, 1923 only if they meet the above conditions.

Kindly let me know if you need any further information or clarification.

Thank you.