ESI Wage limit to be increased to Rs. 25,000/-
The decision to enhance the pay limit for ESI coverage was taken at ESIC’s 160th meeting held in September this year. And thereafter the Government’s recent decision to raise the pay limit from Rs 15,000/month to Rs 25,000/month but yet to be officially introduced. The decision to increase the coverage without any improvement in service quality has been opposed by a section of trade unions.
ESIC is said to be sitting on a corpus which is in excess of half the contribution of Rs 7070 crore. With an employee having gross salary of Rs 25000 works to a Cost to Company Salary of approximately Rs 28000. This single move shall lead to an additional burden of Rs 1200 for employers for every employee with Gross Salary of Rs 25000 and decrease the net pay of the employee by Rs 450.
If there were improvements in medical facilities and medicine availability, the increase would have been a welcome amendment.