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Wage ceiling

The monthly wage limit for coverage under the ESI Act would be such as prescribed by the Central Govt. in the ESI (Central) Rules 1950. The present  wage ceiling for coverage (excluding remuneration for over-time work) is Rs. 15,000/-per month taken into effect from 1.05.2010 (Rule 50 of ESI (Central) Rules 1950).

An employee who is coverable at the beginning of a contribution period shall continue to remain covered till the end of that contribution period notwithstanding the fact that his wages may exceed the prescribed wage ceiling at any time after the commencement of that contribution period.

Wage ceiling for purpose of coverage is revised from time to time by the Central Govt. on the specific recommendation of the Corporation.

Did you know?

The previous wage ceiling for coverage was  
Rs. 6,500/-per month which was effective during the period from 1.1.97 to 31.3.2004. 

  Definitions
  Factory
  Seasonal Factory
  Employee
  Manufacturing unit
  Wages
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