ESIC to raise wage threshold to Rs. 30,000
Posted Date: 9th August 2022
Relating to which Act: Employees State Insurance Act, 1948
Type: ESIC – News Update
Pertains to employers and employees
Relevance of this news: Karma Management Global Consulting Solutions Pvt. Ltd has been in the business of Payroll, Outsourcing, and Regulatory Compliances from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing On-boarding, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
Karma Global maintains the establishment and vendor compliances including payroll compliances on a regular basis, month after month, which is diligently executed by well-trained staff on its rolls and towards the services rendered, it raises the service bill on the clients for payment within 30 days from the date of receipt of the bill but in most of the times, the payments are delayed sometimes by even 3 to 6 months and the outstanding amounts hamper the funds flow for internal work as well as payment of staff salaries. Of course, there are some who regularly pay on time without reminders and this is much appreciated.
Subject: ESIC to raise wage threshold to Rs. 30,000
ESIC to raise wage threshold to Rs. 30,000
Recently, the government under the Atal Bimit Vyakti Kalyan Yojana relaxed Unemployment Scheme norms, so that ESIC will give 50 per cent of average wages for a maximum period of 90 days of unemployment till this calendar year-end as compared to the previous 25%.
In the current corona crisis, the ESIC has decided to raise the wage threshold from Rs. 21,000 to Rs. 30,000 so that employees earning as much as Rs. 30,000 will be able to benefit from it.
Earlier, only employees getting a salary for less than Rs. 21,000 were covered under the ESIC scheme. This decision has been taken to benefit both the people and ESIC. It will give maximum support to more employees during these difficult times. ESIC’s funds have also decreased and thus its fund will also increase with the inclusion of more people.