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Wage limit for coverage under ESI to remain Rs 15000 per month for now

Updated: Oct 10, 2016 05:40:19am
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Wage limit for coverage under ESI to remain Rs 15000 per month for now

New Delhi, Oct 10 (KNN) The wage limit for coverage under Employees’ State Insurance (ESI) will continue to remain at it is that is Rs 15,000 a month till the time a final amendment in the Rule is notified.

The Rule 50 of The Employees’ State Insurance (Central) Rules, 1950 states that 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.

Further, it stated that it shall be Rs 15000 a month “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,” it added.

Increasing the wage limit for coverage, a new notification dated 14th June, 2016 proposed that Rs 15,000 per month shall be increased to Rs 21,000 per month.

However, a notification dated 6th October 2016 has been issued by the Central Government, whereby they have invited objections or suggestions about the proposed amendment in Rule 50 substituting words “fifteen thousand” with “twenty one thousand”.

Therefore, the final notification will only be issued after the expiry of 30 days from the date of publication of this notification. The coverage under ESI will continue to remain as it is till a final amendment in the Rules is notified. (KNN Bureau)

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