ESI wage ceiling increased to Rs. 21,000 from Jan 2017

ESI wage ceiling increased to Rs. 21,000

December 28, 2016

The ESIC had issued a draft law  in the month of October which had increased the ESI wage ceiling limit to Rs. 21,000. After considering the suggestions and objections from the affected persons, the ESIC has made the final decision about increasing the wage ceiling limit to Rs. 21000 from the month of January, 2017. 

The latest update in ESI wage ceiling can be found in our payroll blog – ESI wage ceiling

The official notification can be found below along with a downloadable version of the PDF. 




New Delhi, the 22nd December, 2016

G.S.R. 1166(E).—Whereas certain draft rules further to amend the Employees’ State Insurance (Central) Rules, 1950 were published in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (i) vide number G.S.R. 957(E), dated the 6th October, 2016, as required by sub-section (1) of section 95 of the Employees’ State Insurance Act, 1948 (34 of 1948), inviting objections and suggestions from all persons likely to be affected thereby before the expiry of a period of thirty days from the date on which the copies of the Official Gazette in which the said notification was published were made available to the public; 

And whereas, the copies of the said Official Gazette were made available to the public on the 6th October, 2016; 

And whereas, objections and suggestions received from persons likely to be affected thereby have been considered by the Central Government;

Now, therefore, in exercise of the powers conferred by section 95 of the said Act, the Central Government, after consultation with the Employees’ State Insurance Corporation, hereby makes the following rules further to amend the Employees’ State Insurance (Central) Rules, 1950, namely:-
1. (1) These rules may be called the Employees’ State Insurance (Central) Third Amendment Rules, 2016.
    (2) They shall come into force from 1st day of January, 2017.
2. In the Employees’ State Insurance (Central) Rules, 1950, in rule 50, for the words “fifteen thousand
rupees” occurring at both the places, the words ‘twenty one thousand rupees” shall be substituted.

[F. No. S-38012/02/2013-SS-I]

Note: The principal rules were published in the Gazette of India vide notification number S.R.O. 212 dated the 22nd June, 1950 and lastly amended vide notification number G.S.R. 959(E), dated the 6th October, 2016.


The notification from the Labour Ministry. 

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11 Responses to “ESI wage ceiling increased to Rs. 21,000”

  1. Krishnamurthy

    Change in the rate of Employee subscription and Employer’s contribution may be intimated.

  2. umkulkarni

    Thanks for updating the changes.
    Also confirm through email or tele call, whether changes take place auto in register software automatically or need to remind local contact person.


    dear sir,
    i have problem in esi limit change 21000/- but one of worker did not cut esi after change limit or not change limit
    pl. reply as soon as possible

    • relyonadmin

      Sir, pl contact the support department. They will be able to help you. Also ensure that the software is updated to the latest version.

  4. Balasubramanian.S

    If by mistake the “Yes” button will be click, rest of all employee will be affected by ESI contribution. This is little critical to some persons.

  5. sumit

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

  6. Rajendra Suthar

    Dear Sir,

    My question of Incase One employee Increment on Month in Nov & Gross Wages Up of Rs.21000 & his Last Month we have deduct ESIC & Gross Salary of Rs.20860/-

    So My Question of I have Deduction ESIC in Month of Nov & His Gross Salary of Rs.21000/- ?

    Pl. reply .

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