Latest Increase in Wage limit of Rs.21,000/- Under the ESI Act

As per Rule 50 of the Employees’ State Insurance (Central) Rules, 1950, the wage limit for coverage of an employee under the ESI Act is Rs.15,000/- per month. However, as per the amendment dated 06.10.2016, the wage limit for coverage of any employee has been proposed to increase from Rs.15,000/- to Rs.21,000/-.

Such amendment reached its finality after one month’s time from 06.10.2016 was given by the Central Government inviting objections and suggestions from all corners of people likely to be affected from such proposed enhancement of wage limit. After considering all suggestions and objections and in consultation with appropriate authorities, the Central Government has given the amendment finality by way of publishing in the gazette on 22.12.2016 giving it an effect from 01.01.2017.

Hence, it can be concluded that w.e.f. 01.01.2017, the wage limit for coverage of any employee under the Employees’ State Insurance Act would be Rs.21,000/-.

You can download the latest gazette publication dated 22.12.2016 related to enhancement of wage limit to Rs.21,000/-

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