ESI Eligibility Confusion: Does a Temporary Pay Cut Affect Coverage?

If the gross wages of an employee are Rs. 22,000 in March, they will be out of coverage from April. However, if an employee's gross wages become Rs. 20,000 because they were on leave for a few days, will they still be eligible for ESI, or does the employer have to remove their name by stating they are out of coverage?

Dear Friend,

The eligibility for ESIC is based on the monthly gross amount. Therefore, in your case, the employee does not fall under ESIC eligibility.