Can I cover employees getting salary more then 15000 in ESIC?

Dear all,

I am working in the Payroll department of a manufacturing company. I have around 20 to 30 workers who are earning salaries of more than 15000. My question is, can I include these employees in ESIC coverage? I am aware of the ESIC limit being 15000 and the Workman policy, but I am interested in providing ESIC coverage for these workers. Could you please advise if this is possible?

Thank you.

Sir, coverage under the ESI Act, 1948 is not optional; it is compulsory. If you cover any of your so-called employees receiving wages above the coverable limit (except for overtime), and this information is brought to the attention of the authorities, the benefits drawn will be subject to recovery under section 70 of the said Act. Additionally, the responsible principal employer(s) can be prosecuted under section 84 of the Act and the rules/regulations framed thereunder. Therefore, it is advisable to comply with the provisions of the said Act properly.

Dear all,

I am working in the Payroll department of a manufacturing company, where I oversee around 20 to 30 workers who earn more than 15000. My query is whether I can include these employees in the ESIC coverage. I understand that the ESIC limit is 15000, and there is also the workman policy. However, I am interested in providing ESIC coverage to these workers. Is this feasible?

You cannot cover employees earning more than 15000 gross under ESI for regular employees. However, for disabled employees, the limit is 25000. In the case of disabled employees, the employer is exempt from paying the employer contribution for up to 3 years.

If you wish to provide some insurance or medical benefits to these excluded employees, you may consider opting for a mediclaim policy. You can reach out to insurance companies that offer such policies.

Please note that insurance companies usually require a minimum number of employees to offer a mediclaim policy. Most companies provide mediclaim when there are a larger number of employees, such as 100, 500, or 1000. However, there are a few companies that offer mediclaim even for 10 employees. You can search for options on the internet.

Another approach to consider is to make all employees, including those earning more than 15000, feel insured by deducting PF from their salaries. In PF, the employer contributes 13.61% of the basic salary, with 0.5% allocated to EDLI.

EDLI, or the employees' deposit-linked insurance scheme, provides death and accidental benefits of up to 3.6 lakh. There is a proposal to increase this limit to 5.5 lakh.

I hope this information proves helpful to you.

Dear Mr. Somnath,

Mr. Harsh and Mr. Sujan have provided the best option to you. Mr. Sujan has explained in detail how you can benefit your employees in a double way by covering them under PF. The employees will have savings on their PF accounts, which is the most economical and high-interest tool for their retirement and future plans. Additionally, it provides a pension to the member after 10 years of employment and upon attaining the age of 58, and to the family in case of death. The insured amount under EDLI is expected to increase in the future. For further details, please contact a consultant or PF authorities.

However, Mr. Sujan, please note that the employer contribution has now been revised from 13.61% to 13.36%. The administrative charges are now 0.85% instead of 1.10%, while the EDLI remains the same as mentioned by you.

Thank you.