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ARTICLE · 18 JANUARY 2017

ESI Corporation Raises Wage Threshold To RS 21,000

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The Ministry of Labor & Employment on 22 December 2016 vide its Notification being G.S.R. 1166(E) and in exercise of the powers conferred by section 95 of the Employees' State Insurance Act, 1948.

IndiaEmployment and HR

The Ministry of Labor & Employment on 22 December 2016 vide its Notification being G.S.R. 1166(E) and in exercise of the powers conferred by section 95 of the Employees' State Insurance Act, 1948, after consultation with the Employees' State Insurance Corporation (ESIC), notified the Employees' State Insurance (Central) Third Amendment Rules, 2016 ('Amendment Rules') amending the Employees' State Insurance (Central) Rules, 1950 ('Rules').

By way of said Amendment Rules the Ministry raised wage threshold to INR 21,000 from current INR 15000 as provided in Rule 50 of the said Rules. The amended Rule 50 will now read as under:

50. Wage limit for coverage of an employee under the Act. — The wage limit for coverage of an employee under subclause (b) of clause (9) of Section 2 of the Act shall be twenty-one thousand rupees a month: Provided that an employee whose wages (excluding remuneration for overtime work) exceed twenty-one thousand rupees a month at any time

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