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ESI amendment 2016 - draft law - ceiling to be increased to Rs. 21000

ESI amendment 2016 – draft law

October 19, 2016

The ESIC has issued a draft law which increases the ESI wage ceiling limit to Rs. 21,000 in the ESI amendment 2016 – draft law. 

According to the draft law, the ESI wage ceiling which was previously Rs. 15,000 has now been increased to Rs. 21,000. SO any employee who is having a gross earning of below the said Rs. 21,000 limit will be applicable for ESI. 

This rule is currently in the draft format. The central government has said that any objections or suggestions regarding the same will be taken into consideration within 30 days of making this notice public i.e., till 5th of November. 

 This change will bring an addition of 50 lakh of people under the ESI benefit.

The notification is given below. 

http://relyonsoft.com/wp-content/uploads/2016/10/ESIC-Notification-for-Increase-Limit-21000.pdf

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24 Responses to “ESI amendment 2016 – draft law”

  1. Kashinath Kadam

    Dear Sir,
    It is unwarranted in view of the fact that 95% employees of the unorganized sectors like Shops and Establishments, Small Scale Industries and Medium sized Industrial Employees would come under its purview which means these employees and their respective employers would have to shelve out more money to the ESI which does not commensurate the employees in its right perspectives. Does an employee spends Rs 1366 per month on medication i.e.( Rs368 being contribution from employee + 998 being contribution from an Employer)
    If your ESI scheme is so beneficial to the employees why are you not making it compulsory to the Central & State Govt. employees? Why are you making it compulsory only for the employees of the private Sector? Why are you not making it optional i.e. let the option be with the employee concerned whether to enrol himself into the scheme or not. Has anyone looked into the administration and management of the ESI Hospitals located in one corner of the state and are far of from the residences of the employees.
    The ESI wage ceilings are being hiked only to add the coffers of the ESI Corporation and not to pass on benefits equivalent to their rightful contribution.

    Reply
    • Bharath Rai

      THis amendment will be profitable to govt not to the employees nor employer. if govt is really willing to make it more effective, than it is better to make the present system more favorable to employees who are already a member of esic. make effort to improve the present system by increasing dispensaries and ESIC hospitals allover india instead of making profit oriented plan. being govt dpt focus more on service

      Reply
  2. Prabhakar

    Is this applicable from 1st October 2016, i read in some website saying that it is a draft which has not been approved and GO is not yet released. So show we implement this from October 2016 please clarify.

    Reply
  3. Kamlesh Gianani (Mazda Ltd)

    May I know wether it will be applicable from October-16 or November-16?

    Reply
  4. Sandeep Bidikar

    When will be the ceiling limit of Rs.21,000/- applicable and if the employee who is getting salary above Rs. 15000/- is not willing to take ESI and want to take mediclaim Policy of other private Insurance company, is it possible ?

    Reply
  5. NAGARAJA RAO

    Employee contribution must be reduced 1% . Because with this limit n number of employees will be coming into perview of esi act. so that employees are benefits

    nagaraj

    Reply
  6. Jeetendra Verma

    ESIC new rule only be beneficial to ESI department only. I truly agree with the Kashinath Kadam views. People who are under this scheme majority of don’t go to the ESIC hospital. Govt are making changes in the rules to increase their monetary benefit, I would call it one kind of extortion in legal ways.

    Reply
  7. RUPALI MAVANI

    ESIC – should be an option an employee needs and wants to opt for. It is seen that when monthly deduction of about approx 1000 rs from employee and emploer contributes to around 12000 rs. per annum which if contributed to any medical facity provider would actually benifit the employee and he can see value in it and employer would also see the value for money.
    currently the facility is not nearby many premises. Also administartion of this is not found in good condition. No additional facility e.g. a family doctor or regular medicin can be claimed ……….so it is in a way found to be effective in case there is an accident case.
    Need a communication from government what are additional facilty offered.
    Rupali Mavani

    Reply
  8. NIKAM DILIP

    ESIC DEDUCTION CEILING LIMIT SHALL BE INCREASED AT ALL BECAUSE IT IS NOT BENEFICIAL TO THE EMPLOYEE AS WELL AS EMPLOYER. ESIC DEDUCTION SHALL BE VOLUNTARY BUT NOT COMPULSORY TO ANY EMPLOYEE. SOME OF THE ORGANIZATIONS ARE DEDUCTING AMOUNT FROM THE SALARY OF EMPLOYEE BUT NOT DEPOSING TO ESIC DEPT. EVEN SHARE OF EMPLOYEE THAN FORGET ABOUT THEIR OWN CONTRIBUTION. IT BURDEN AND WASTAGE OF MONEY FOR THE LABOUR. ALSO PT SHALL BE STOPPED TOTALLY. THE OBJECT OF DEDUCTION OF PT FROM SALARY IS ACHIEVED I.E. ACCUMULATED FUND SHALL BE DISTRIBUTED AMONG THE UNEMPLOYED CITIZEN BUT OBJECT AND PURPOSE IS NOT ACHIEVED BUT FUND AVAILABLE TO POLITICIANS TO MAKE A SCAMS /FRAUD OF CRORES. FINALLY ESIC CEILING SHALL BE REDUCED OR KEEP IT CONSTANT AND PT SHALL BE TOTALLY ABOLISHED.

    Reply
  9. chitra

    ESIC new rule only be beneficial to ESI department only.- I agree.
    Just increasing ceiling limit is not at all helpful to anyone. There are not enough ESI hospitals and facilities available in our city. Even ESI insured employees do not to go ESI hospitals because of that. It is a lot of burden on small companies as employees do not see any benefit in having ESI.
    First get private hospitals also accessible under ESI and then increase the limit so that everyone will get benefit.

    Reply
  10. relyonsoft

    Dear All,
    The confirmation that this rule is applicable has not yet been given from the department. We will update as and when it is confirmed with further details.

    Reply
  11. Ramanamurthy

    ESIC should be compulsory for all in private sector. But the benefits should extend to any private hospital – cashless service just like any private insurance. Also, the contributions rates should be 1% from employee and 2% from employer. this is possible by making ESIC compulsory for all in private sector without any limit on salary.

    Reply
  12. AMAR SINGH

    The proposed amendment aims to add more fund in to ESIC by raising the wage ceiling to Rs.21000/- per month. More beneficial to Government good for election propaganda.
    Why ESI Scheme is not applicable to all Central / State Govt employees.
    Why separate specialised facilities are in place for defence personnel ? Why not ESI
    Why ESI facilities are not alike private mediclaim insurance policy like cashless, and medical treatment to specialised hospital of the choice of employee.
    Is the present ESI facilities is competent enough to cater the addition of so many new employees. The administration and management are self praised in booklet, website 60% propaganda.
    Is it not a compulsory burden on the Employer ?

    Extortion in modern legal way..

    Reply
  13. Satish

    So in effect, the govt is saying that employees who have a salary under 21000 are not capable of buying suitable health insurance for themselves, which is why the govt wants to forcibly cover them under ESI.
    So I’m smart enough to earn 20K per month as salary, but not smart enough to buy health insurance for my family and myself.
    Similarly, with the last change made in EPF, it means that anyone with less than 15000 salary is incapable of savings and investment for retirement or life insurance, so the govt will force them to save via the EPF.
    I don’t understand – why do we have to budge to this kind of dictatorship?
    Why cant employee be allowed to make their own decisions ?
    Why cant we spend our hard earned money the way we want to?

    Reply
  14. Nandini

    Hardly anyone use ESIC benifits as the ESIC accessiblity is limited and we are ending up just adding more money to ESI. Even to avail the facility there are lots of formalities which make it still worst.
    its just a burden on Employer

    Reply
  15. sumit

    Employees’ State Insurance Corporation has advertised for the openings of LDC through ESIC Recruitment 2017 Do check the full details and apply online

    Reply

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