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Ceiling for ESI to 25,000

Ceiling For ESI contribution to be increased to Rs. 25000

November 19, 2015

EDIT: Oct 2016, latest changes for “ESI amendment 2016 – draft law”. 

The Minister of Labour and Employment said the Employee’s State Insurance Corporation (ESIC) board has been considering to increase the ceiling limit for employees under ESIC coverage from the existing Rs. 15,000 a month to Rs. 25,000 a month.

Currently, the ceiling for ESI is Rs.15000 for all the existing members.

The revision in the ceiling for ESI means that all industrial workers who pull in a salary of up to Rs.25, 000 will be at a benefit. This includes benefits for medical and hospitalization facilities which will be made available at more than 1,550 clinics and hospitals. These hospitals could be run directly by the Employees’ State Insurance Corporation (ESIC) or other hospitals with which it has a tie-up.

Every month, eligible employees who fall under the ceiling of Rs.25000 will contribute 1.75% of their salary and employers contribute 4.75% to the ESI corpus.

The last increase in the salary ceiling for ESI was changed in the month of May 2010. At that time, it was raised from Rs.10000 to Rs.15000.

The move would impact an employee’s take home salary for those who are currently in the salary range of Rs. 15,000/- to Rs. 25,000/-. Further, it would have the impact of increasing the ESI contribution on the employer’s part as well as the compliance.

Related topics: Coverage threshold limit for PF is 10 employees. 

 

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11 Responses to “Ceiling For ESI contribution to be increased to Rs. 25000”

  1. Prakash

    kindly tell me when this hike applicable ,and how can we apply it to another employee which was out of this range

  2. Raju.p

    kindly tell me when this hike applicable ,and how can we apply it to another employee which was out of this range

  3. HARISH C R

    The new scheme is more beneficial to the Department. The option of contribution should be given to the individuals as many employees do not like to opt for ESI scheme for various reasons. Secondly, the current contribution is very high. Instead, if the Department insists on 1% from employee and 3% from Employer, it may work out better as the volume of the contribution will also be considerably high. The Department must also provide additional facilities and build-up cordial tie ups with other private sophisticated hospitals where ESI is not able to provide the services to the employees

  4. Vaibhav

    Hi ,
    please explain me in detail.
    How much employee should be contribute.? and
    How much employer should be contribute.?
    Example : Suppose empoyee take home salary is Rs. 16,500 /- , then how much employee will contribute & Employer will contribute..

    Please Explain

  5. Kammili Rajani

    my gross salary is 20300 per month. Can i have eligibility for ESI

  6. R B yadav

    Is PF APPLICABLE ON 5 employees who are on temporary at petrol pump in rural area.
    EDU APPLICABLE ON 5 Labour in rural area.

  7. Ajaz pasha

    Dear sir or madiom
    can I now in which rules of esi has returned that . A private hospital bill will not clime un tell the person has not completed his contribution esi card for 2years

    And what is the eligibility period should be required for a private hospital bill clime in esi

  8. Rajiv

    Der sir please inform how many time of inkrig limit 25000 esic

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