Salary Limit: Employees registered under the Employees’ State Insurance Corporation (ESIC) scheme have received significant updates regarding their medical treatment and financial protection. The government recently shared vital details about the scheme within the legislative body. Let’s delve deeper into this development.

Key points discussed in Parliament:

1. Queries raised in Parliament:

The Ministry of Labor and Employment, responsible for administering the ESIC scheme, faced questions in Parliament. MP N.K. Premachandran inquired whether there were intentions to raise the existing ESIC salary cap of Rs 21,000. Additionally, the MP questioned if there were plans to broaden the ESIC scheme’s coverage to encompass other sectors. Furthermore, concerns were raised regarding potential relaxations in attendance requirements and other limitations concerning specialized medical care for seasonal laborers, like those in the cashew industry.

2. Government’s response:

In response, Minister of State for Labor and Employment, Shobha Karandlaje, mentioned that the government periodically revises the ESIC salary threshold. The last increase occurred from Rs 15,000 to Rs 21,000 per month starting January 1, 2017. For employees with disabilities, the threshold stands at Rs 25,000. Nevertheless, the government clarified that while the salary cap undergoes periodic revisions, no specific timeline or proposal has been announced for its enhancement.

Karandlaje also highlighted the integration of the Employees’ State Insurance Act, 1948, into the Code on Social Security, 2020, effective November 21, 2025. This integration paves the way for extending ESIC benefits to a diverse array of establishments and workers.

3. Expanded coverage under ESIC:

The ESIC now encompasses workers in the unorganized sector and gig economy. The Social Security Code, 2020, grants authority to the central government under Section 45 to devise a framework for extending ESIC advantages to unorganized sector laborers, gig workers, and platform employees. The government clarified that presently, there are no provisions for exempting seasonal factory workers from attendance requirements and other criteria for specialized medical treatments. These workers are currently outside the ESIC’s coverage under the existing system.