Employee Wage limit for ESIC Cover raised to Rs 20,000 a Month

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The Employees’ State Insurance Corporation (ESIC) in the Employees’ State Insurance (Central) Rules, 1950, in rule 50, has substituted the words “fifteen thousand rupees” with ‘twenty one thousand rupees”.

According to Rule 50 of ESI (Central) Rule, 1950, the wage limit for coverage of an employee under sub-clause (b) of clause (9) of Section 2 of the Act shall be fifteen thousand rupees a month.

“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,” ESIC said.
Provided that an employee whose wages (excluding remunera­tion for overtime work) exceed fifteen thousand rupees a month at any time after and not before the beginning of the contribution period, shall continue to be an employee until the end of that period.
Provided further that the wage limit for coverage of an employee who is a person with disability under the Persons with Disabilities (Equal Opportunities Protection of Rights and Full Participation) Act, 1995 (1 of 1996), and under the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999) respectively, shall be twenty-five thousand rupees per month.

ESIC now in exercise of the powers conferred by section 95 of the said Act, the Central Government, after consultation with the Employees’ State Insurance Corporation, has further amended the Employees’ State Insurance (Central) Rules, 1950.

It said now these rules may be called the Employees’ State Insurance (Central) Third Amendment Rules, 2016. They shall come into force from 1st day of January, 2017.

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