ESIC Wage Ceiling Hike Proposed — Coverage May Extend to ₹25,000/Month Workers

Under the Employees' State Insurance Act, 1948:

• ▸Applicable to factories and establishments with 10 or more employees
• ▸Mandatory for employees with monthly wages up to ₹21,000
• ▸Employee contribution: 0.75% of wages
• ▸Employer contribution: 3.25% of wages
• ▸Total contribution: 4% of wages

If the wage ceiling is raised to ₹25,000:

• ▸All employees earning between ₹21,001 and ₹25,000/month will become mandatorily covered
• ▸Employers must register these employees and start ESI contributions immediately upon notification
• ▸Current exempted employees (earning above ceiling) may be given a one-time option to join voluntarily

ESI provides comprehensive medical benefits:

• ▸Free medical treatment at ESI dispensaries and hospitals
• ▸Sickness benefit: 70% of wages during temporary disablement (up to 91 days)
• ▸Maternity benefit: 26 weeks at full wages for insured women
• ▸Disablement benefit: 90% of wages for permanent disablement
• ▸Dependent's benefit for family of deceased insured persons

If the new ceiling is notified:

• ▸Identify all employees in the ₹21,001 – ₹25,000 salary range
• ▸Register newly eligible employees within 10 days of their becoming eligible
• ▸Update payroll software with new contribution rates
• ▸Start deducting 0.75% from employee wages
• ▸Deposit total 4% (3.25% employer + 0.75% employee) by 21st of following month

Employers can access all ESIC services online:

• ▸Monthly return filing at esic.gov.in
• ▸Employee registration through ESIC portal
• ▸Challan generation and payment
• ▸IP Number generation for new employees
• ▸Accident and maternity intimation online