Is It Okay for Employees Earning Over 21K Gross to Choose ESIC Coverage?

Hi, Good afternoon! Could you please clarify whether it is acceptable in terms of statutory compliance for an employee earning a gross salary exceeding 21K to opt for ESIC coverage?

Regards, Chumki

Dear Madam, regarding your queries, please note that if the employee exceeds the salary bracket of Rs. 21,000 gross per month, you have to keep him in ESIC until the recent contribution period is over, i.e., up to 30.09.2024.

Thank you for your response, Sir! However, my question is, if someone chooses to continue their ESIC even after reaching a gross salary of more than 21K, is it possible or is it not acceptable?

Regards,
Chumki

Under ESIC, it is not required to contribute if a member is earning more than 21,000. However, they must continue to contribute until completing the contribution period, even if the member is earning more than 21,000.

No, once a member crosses the wage ceiling of Rs. 21,000, he/she will be outside the purview of ESI. However, if he/she crosses the wage ceiling of Rs. 21,000 during the contribution periods (April to September & October to March), he/she will continue to be covered under ESI till the end of the respective contribution period. After the end of the contribution period, he/she will be out of ESI coverage. Thereafter, he/she cannot be a member of ESI.

Regards,
MVK