ESIC - Enhancement in the Wage Ceiling

Enhancement in the wage ceiling for coverage under the ESI Act, for an Employee under Disability

ESI Coverage for Disable Employee

Amendment of Rule 50, Rule 54 and insertion of Rule 51A of the Employees' State Insurance (Central) Rules, 1950.

The wage ceiling for coverage under the ESI Act , of an employee with disability (under Equal Opportunities Protection of Rights and Full Participation Act 1995, )and (National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999) has been fixed at Rs.25,000/- per month, effective 1.4.2008.

The Central Government, by a Gazette notification on 31.03.2008 has amended Rule 50 and Inserted New Rule 51 A (1) and (2) and Rule 54 of the Employees' State Insurance (Central) Rules, 1950, enabling the enhancement of the wage ceiling from the 1st April 2008. In consequence, those disabled employees in the coverable factories and establishments drawing monthly wages up to and including Rs.25,000/-, will be covered under the ESI Act. The respective employers shall not be required to pay employer’s share of contribution up to a maximum period of three years from the date of commencement of the contribution period.

In order to cater to the additional coverage of employees under higher wage groups (arising on account of this new wage ceiling for the special category), fifty seven more slabs of cash benefit rate, have been introduced from 1st April 2008, providing for a minimum rate of Rs.200 per day and a maximum rate of Rs.480/- per day depending on the average daily wage earned by an employee under the special category.

Medical facilities to the prospective beneficiaries will be available from 1st April 2008. Affected employers under the ESI Scheme are to draw a list of new entrants in prescribed format and send it in quadruplicate along with their declaration forms (Form-1) to the respective Branch Office of the ESI Corporation.