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HR Labour and Compliance

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HR Labour and Compliance

  • ESI has updated the employee salary cap to Rs. 25000
  • Changes can be made easily within myHRSuite to comply with the new ESI policy.
  • ESI upload is available at the click of a button.
  • Incase you require any assistance with ESI policy updates please dont hesitate to contact our ESI helpdesk us at [email protected]

The government has decided to include more people under Employees’ State Insurance (ESI) which provides medical care to industrial workers and their dependents by increasing the salary cap from Rs 15,000 to Rs 25,000.

The decision to raise the salary ceiling was taken at a meeting of the corporation chaired by the Labour and Employment Minister Sis Ram Ola.

According to the revised ceiling, employers will have to deduct 6.5 per cent of workers’ salary up to Rs 25,000 from the gross salary. The earlier ceiling was Rs 15,000, set in 2010.

The Labour Minister said that the move will benefit millions of industrial workers across India. Besides workers, their families will also benefit from it.

All industrial workers whose salaries fall under the revised ceiling will benefit from medical and hospitalization facilities provided by Employees’ State Insurance Corporation (ESIC).

Every month, eligible employees contribute 1.75 per cent of their salary and employers contribute 4.75 per cent to the ESI corpus.

In May 2010, the last increase in the salary ceiling for ESI was made, raised to Rs 15,000 from Rs 10,000 in the gross salary.

Currently, almost 15 million workers directly benefit from the insurance provisions. After the review, the total number of people under its cover might increase to 20 million.

The ESIC Act of 1948 was the first social security legislation of independent India and offers medical care to workers and their dependents along with unemployment benefits in case of disablement or occupational accidents, including fatal ones

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