ESIC limit
Querist :
Anonymous
(Querist) 16 December 2010
This query is : Resolved
I am totally confused about how the limit of Rs.15000 under ESIC operate. If I get Rs.16000 in April 2010 then it is not applicable. If in May 2010 my salary goes down to say Rs.13000, will I be covered by ESIC? At what point of time the limit is to be applied, is it month wise or on half yearly basis or if it is not applicable once then is it never applicable? Do I have to decide in April and October every six months?
H.M.Patnaik
(Expert) 16 December 2010
The Ceiling limit under ESIC has been raised to cover all Workmen in receipt of Gross wages below Rs. 15000/- per mensem. In the instant case, if on a subsequent period, the wages are lowered by the employer and brought below the ceiling fixed , the workman will be subject to provisions laid down under the above act.
On the other hand ,if the workman is within the ceiling limit from the beginning of wage period and ESIC contb'n is deducted from wages and subsequently his wage is hiked beyond the ceiling limit , then the said workman ceases to be an Workman falling under the provision of the act with prospective effect.