Esic Raises Wage Threshold To Rs 21,000 - PDF Download [Thread 570519]

I noticed that the draft rules published only talk about raising the limit from 15,000 to 21,000. Whereas the news articles last month also mentioned that existing insured persons would be given the option to continue their membership even if their salary crosses the limit of 21,000. So does that mean the optional coverage beyond a 21,000 salary will have to be notified separately either as an amendment or draft rule again?

In my last thread, I had raised the question of the rule of allotment of Insurance Numbers within ten days. If the notification is enforced from October 1, 2016, it would be a breach of the law. Currently, the notification has not been enforced, so we cannot obtain the Insurance number. Should we obtain the Insurance number for those persons who are expected to become members under the scheme?

Hi HR colleagues,

From an organization/HR perspective, what is the impact of the raise in ESIC wages could have?

Thanks

You are right, but employer means entrepreneur in does not matter in the Act, whether he is employing 2 persons or 2 lacs. The definition of an employer is the same in all Indian Acts.

It is not a question of one or some employer. If the majority of employers oppose it in India, then it may have an effect. Usually, a large scale of employers do not bother about that. Moreover, it will be decided in the next meeting of the ESI standing committee, which includes representatives from Labour and Employers. It is a social welfare scheme; usually, objections may not be accepted due to financial burden. So, there are high expectations of its passing, but the date of effect may not be clear until the notification. In this respect, I agree with Mr. Moondra's answer.

Suppose ESIC's 21000 ceiling was approved; at that time, more burden was imposed on the company's side.

Dear All,

Enclosing the press release note regarding the increase of ESIC ceiling rose from 15000/- to 21000/- for your reference.

Thanks & Regards,

Sumit Kumar Saxena

Hi all,

Regarding the threshold decision to raise salaries/wages from 15000 to 21000 under the ESI Act amendment, I believe there has been too much discussion in this forum. Based on this discussion, the conclusion is that this amendment will only take effect after notification by the Central Government, which may not occur before 6th November 2016. It is anticipated that the amendment will be effective from December 2016 (if the notification is issued before 1st December 2016). If not in effect from 1st December, workers/IP may not qualify for the 92 days of service needed to avail sickness/maternity benefits as required under the ESI Act. If not effective from 1st December, no one would complete the required 92 days of service in the following three months, as the total days would be 90 from January to March. Therefore, it is expected to be applicable from 1st April 2017. It is important to note that the statement of the Labour Minister or the chairman of any standing committee cannot establish the law without the issuance of an official notification in the gazette.

Let us wait for the notification. Until then, I suggest we should refrain from discussing this topic further and wait for the notification to be issued before making any final decisions based on it.

Whether there has been a new rule made that EMPLOYER CONTRIBUTION OF EPF/EPS 3.67/8.33 would not be returned to the employee until the age of 57/59 years. I have read in another forum that this kind of rule has been in place since February 2016. Is there any circular or notification issued by the department?

Hi all,

I have a small doubt. I am working in a company where they are looking to regularize the employment with PF and ESI from November 2016. Previously, no PF or ESI was deducted. So, will the new amendment be applicable to all existing employees who are receiving a gross salary below 21000, or only to new employees who joined in October 2016?

Regards,
Sagar