News: Government raises ESIC cap

Compensation & Benefits

Government raises ESIC cap

Employees with a salary entailing a monthly cost to company or CTC of up to Rs 30,000 may be faced with a cut in take-home pay, following a government decision to enhance the ceiling for mandatory health insurance coverage through the Employees' State Insurance Corporation (ESIC). Employers will have to deduct 6.5% of workers' earning up to Rs 25,000 in gross salary towards ESIC, up from the earlier ceiling of Rs 15,000 that was set in 2010. When the idea was originally mooted in June 2012, employers had stressed that the revision in the ceiling must not be considered in isolation.

Employees with a salary entailing a monthly cost to company or CTC of up to Rs 30,000 may be faced with a cut in take-home pay, following a government decision to enhance the ceiling for mandatory health insurance coverage through the Employees' State Insurance Corporation (ESIC). Employers will have to deduct 6.5% of workers' earning up to Rs 25,000 in gross salary towards ESIC, up from the earlier ceiling of Rs 15,000 that was set in 2010. When the idea was originally mooted in June 2012, employers had stressed that the revision in the ceiling must not be considered in isolation.

Read the Economic Times news report here.

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Topics: Compensation & Benefits, #Current, #National, #TotalRewards

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