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Please inform me an employee who reaches salary of rs.15000 or above he will be out of esi benefits then what would be liability of the employer towards this employee ?
From India, Ghaziabad
boss2966
1165

After reaching the ceiling limit of ESI Coverage, the employeee must be covered with Employee compensation Policy, The liability will be taken care by the Insurance company if the employer has the WC Policy otherwise the employer has to bear the cost.
From India, Kumbakonam
saiconsult
1897

There is no such option to continue with ESI coverage once an employee exceeds the wage limit of Rs.15000/-p.m. However if the wage limit is exceeded in the midst of the contribution period, the ESI coverage will last till the end of the contribution period.
B.Saikumar

From India, Mumbai
Eswararao Ivaturi
16

Once an employee is under ESIcoverage and gradually exeedsthe limit of Rs.15000/- andhis contribution continues
on this ceiling amount addingthat of employer\'s contribution, employee shall be covered. If the employer doesn\'t want to contribute beyond when the
employee exceeds the ceiling
amountandwanted toprovide
alternate insurance benefit
to the employee then the
employee will be out from
ESI after completion of the
benefit period.
Eswararao Ivaturi

From United States, Cupertino
rajans68
12

There is no liability from Employer side if statutory ESI limit of Rs. 15,000/- or more is reached .
Some Companies provide insurance through tie-ups with other insurance companies . Some don't .
Regards,
Srinivas

From India, Hyderabad
ajay_s_kini
20

The ESIS laws are clear on this, however interpretation given by some for this query is wrong. Upon exceeding 15k the employee becomes exempt and hence is out of ESIS. As such the employer has no bounden liability as long as the employee is accident free. The problem starts if the employee meets with any kind of accident in the course of discharging his duties. Here the Workmen Compensation Act is applicable. It is advisable to cover such liability by paying a negligible sum as premium to any insurance company for Employee Accident Policy where such payouts are taken care of by the insurance company within the sum insured for each employee.
From India, Mumbai
varghesemathew
910

A women employee not covered by ESI will be eligible for benefit under Maternity Benefit Act.Insurance is not a legal liability of employer. Varghese Mathew 09961266966
From India, Thiruvananthapuram
saiconsult
1897

In the light of some confusing interpretations on the coverage of employees for ESI benfits,I would like to refer to Sec.2(9) which defines an 'employee' for the purpose of coverage. As per the said definition, every person employed for wages whether directly by principal employer or indirectly through a contarctor or let on hire to the principal employer to do the work of an esatblishment or any work connected with that of the establishment is eligible to be insured for ESI benefits. However the said subsection(9) of Sec.(2) excludes the following persons from the definition of 'employee' which in other words means excluding them from the coverage of ESI.

a) A member of the armed forces;

b)Any person whose wages(excluding OT) exceeds the wage limit fixed by Centarl Government and Central Government ha sfixed the wage limit under ESI rule (50) at Rs. 15000/- p.m( which is likely to be revised to Rs.25000/- as it is learnt).

Provided that whose wages exceed the wages so fixed by Central Government which is now Rs.15000/-p.m at any time after the beginnig of the contribution period, shall continue to be an employee(for the purpose of coverage) till the end of teh contribution period.

To sum up the meaning of sec.2(9) of the ESI Act read with Rule 50 of ESI Rules is that an employee whose wages exceeds Rs.15000/p.m at the beginning of the contribution period is excluded from the coverage but if his wages excceed at any time after the beginning of teh contribution period( in the middle of teh contribution period), he will continue to be covered till the end of teh contribution period only.

This is what the Act and rules say.

B.Saikumar

HR & Labour La wAdvisor


From India, Mumbai
Eswararao Ivaturi
16

Ultimately, no employer would
like to take the libility of
contributing to the employee
who exceeds the ceiling amout
and it is advisable to cover such employees under the Group
Insurance scheme,
Eswararao Ivaturi.

From United States, Cupertino
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