ESI payable to employees having wages upto Rs.10,000 per month
October, 11th 2006
This is to inform you that the Central Government has issued a notification dated 22nd September, 2006, revising the wage ceiling for coverage of employees under the ESI Corporation Act from Rs.7,500 p.m. to Rs.10,000 p.m. The scheme is effective from 1st October, 2006 and as such all employers are required to send a list of such employees to the appropriate ESIC branch office alongwith declaration form who fall in the category of Rs.7,500 to Rs.10,000 p.m.
The limit again revised to Rs. 10000/- w.e.f. 1-10-2006.
Copy of the notification is given below for your kind reference.
EMPLOYEES' STATE INSURANCE CORPORATION
HQRS. OFFICE: PANCHDEEP BHAWAN
COMRADE INDERAJIT GUPTA MARG
The Regional Director/Jt. Director I/c
Employees' State Insurance Corporation,
Regional Office/SRO/Divisional Office,
Enhancement of Wage Ceiling for coverage under the ESI Act, 1948.
In pursuance of the decision taken by the ESI Corporation at its 136th meeting held on 15.06.2006, the wage ceiling for coverage of employees under the Act from Rs.7, 500/- to Rs10, 000/-, the Central Govt. has issued a final notification which has been published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-Sec.(i) dated 22.09.2006 for coverage under the Act from Rs.7, 500/- to Rs10, 000/-, per month and consequential addition of 10 more slabs of standard benefit rates. A copy of the Gazette, containing Notification no. S-38025/9/2006-SS-I dated 22.09.2006 amending Rule 50 and 54 of ESI (Central) Rules, 1950, which will come into force w.e.f. 01.10.2006 is enclosed. The salient features of the notification are as under
a) With the amendment in Rule 50, the wage ceiling for coverage under the ESI Act has been enhanced from Rs.7, 500/- to Rs10, 000/-, per month w.e.f. 1.10.2006. Accordingly, all employees whose salary, excluding remuneration for over-time work, exceeds Rs.7,500/- but does not exceed Rs.10,000/- per month would become coverable under the ESI Act w.e.f. 1.10.2006 .
b) As a result of amendment in Rule 54, ten more slabs of daily standard benefit rates have been added in the table of standard benefit rates under Rule 54 of ESI (Central) Rules, 1950. The revised table effective from 1.10.2006 will be as under
Group of employees whose average daily wages are
Standard Benefit Rate
14 or full average daily wage whichever is less.
Rs.28 and above but below Rs.32
Rs.32 and above but below Rs.36
Rs.36 and above but below Rs.40
Rs.40 and above but below Rs.48
Rs.48 and above but below Rs.56
Rs.56 and above but below Rs.60
Rs.60 and above but below Rs.64
Rs.64 and above but below Rs.72
Rs.72 and above but below Rs.76
Rs.76 and above but below Rs.80
Rs.80 and above but below Rs.88
Rs.88 and above but below Rs.96
Rs.96 and above but below Rs.106
Rs.106 and above but below Rs.116
Rs.116 and above but below Rs.126
Rs.126 and above but below Rs.136
Rs.136 and above but below Rs.146
Rs.146 and above but below Rs.156
Rs.156 and above but below Rs.166
Rs.166 and above but below Rs.176
Rs.176 and above but below Rs.186
Rs.186 and above but below Rs.196
Rs.196 and above but below Rs.206
Rs.206 and above but below Rs.216
Rs.216 and above but below Rs.226
Rs.226 and above but below Rs.236
Rs.236 and above but below Rs.250
Rs.250 and above but below Rs.260
Rs.260 and above but below Rs.270
Rs.270 and above but below Rs.280
Rs.280 and above but below Rs.290
Rs.290 and above but below Rs.300
Rs.300 and above but below Rs.310
Rs.310 and above but below Rs.320
Rs.320 and above but below Rs330
Rs.330 and above but below Rs.340
Rs.340 and above but below Rs.350
Rs.350 and above but below Rs.360
Rs.360 and above but below Rs.370
Rs.370 and above but below Rs.380
Rs.380 and above
2. In the light of the aforesaid amendments, the following steps shall be taken urgently for registration of additional employees who will become coverable under the Act w.e.f. 1.10.2006 consequent upon enhancement in the wage ceiling -
a) All the employers may be requested to send a list of all such coverable employees in the enclosed Performa to the appropriate Branch Office (in quadruplicate) along with their declaration forms. A copy of the list may be endorsed to Regional Director/Joint Director, In-charge of Sub-Regional Office/Divisional Offices (Policy Section) for record.
b) In case of workers who were earlier covered under the scheme and had gone out of coverage on crossing the wage ceiling, the employers may be requested to indicate employee's old insurance numbers in the list and also to enclose their old Identity Cards, if available, for re-validation.
c) On receipt of the lists of such coverable employees along with their declaration forms/old Identity cards, the Branch Office may issue Temporary Identity Cards (TICs) immediately across the counter and re-validate the old Identity Cards by affixing a rubber stamp marking "Re-validated on re-entry in insurable employment - w.e.f. 1.10.2006". Where old Identity cards are not available, duplicate identity cards may be issued free of cost.
d) The Branch Managers will take necessary action to issue other documents on priority basis within a period of 7 days from the date of receipt of documents from the employers.
e) One copy of the lists referred to in (a) above may be sent to the appropriate dispensary/AMO to ensure that medical benefit is provided to the newly covered employees and members of their families without insisting for ESIC-37/ESIC-86. The AMO ESI Scheme will make an allotment of newly covered/re-entered employees to area Insurance medical Practitioners.
Necessary instructions may be issued to all Branch Managers, Administrative Medical Officers / Directors of ESI (Medical) Scheme/ Panel Doctors and State Governments. Enhancement in the wage ceiling may also be brought to the notice of the employers and their organizations through letters, advertisements and news items in the national and local Dailies and through circulars. The Workers' Organizations may also be informed about enhancement in the wage ceiling.
A monthly report indicating the additional employees fresh and re-covered due to enhancement of wage ceiling may be sent to the undersigned in a Performa enclosed so as to reach by 20 th of the following month positively. The first such statement should reach Hqrs. Office by 20th November, 2006.
Receipt of this letter may please be acknowledged.
Encl: As Above.
The Branch Manager
Sub:- Increase in the wage ceiling from Rs.7, 500/- to Rs.10, 000/- per month for coverage w.e.f. 1.10.2006.
I hereby declare that the under-mentioned employees working in the aforesaid factory/establishment, including employees of the contractor(s), have been brought under the ambit of the ESI Act, 1948 (as amended) consequent upon enhancement of wage ceiling for coverage from
Rs.7, 500/- to Rs.10, 000/- per month w.e.f. 1.10.2006
Name Ins. No. if earlier covered under the Act
Branch Office to which attached (write N.A. in r/o newly covered employees)
Total amount of monthly salary / wages excluding OTA paid / payable from 1.10.2006
Name of ESI Dispensary / Hospital
The declaration forms of the newly coverable and identity cards of re-entered employees are enclosed for allotment of Insurance number/revalidation of Old Identity Cards/issuance of Duplicate Identity Cards.
Certified that the above particulars are correct in every respect and no employee including part-time/daily rated/contractors' employees have been left out.
Name, Designation and signature of Principal Employer
ENCLOSORUES TO HQRS. OFFICE LETTER NO. X-14/11/1/2004-P&D DATED 29.09.2006
Regional Office/Sub-Regional Office/Divisional Office