Government proposes to enhance wage ceiling for dependent parents


The government has proposed to enhance the wage ceiling for dependent parents to become eligible for coverage under the labour ministry’s Employees’ State Insurance (ESI) scheme Proposal, thus widening the coverage of medical benefits to a larger population.

As per draft notification, the income limit for availing medical benefit for the dependent parents of an insured person covered under ESI Scheme has been proposed to increase from the existing Rs 5000 per month from all sources to Rs 9000 per month. The draft notification comes following a decision of the ESIC board in February this year in this regard.

The Employees’ State Insurance Corporation is a pioneer social security organization providing comprehensive social security benefits like reasonable medical care and a range of cash benefits in times of need such as employment injury, sickness, death etc to its beneficiaries.


The ESI Act applies to premises/precincts where 10 or more persons are employed. Under the Act, the employees drawing wages up to Rs 21,000 a month are entitled to health insurance cover and other benefits.

The Act now applies to over 10.33 lakh factories and establishments across the country, benefiting about 3.43 crores family units of workers. As of now, the total beneficiary population of ESI Scheme stands over 13.32 crores.

Ever since its inception in 1952, the ESI Corporation has, so far, set up 154 hospitals, 1489 dispensaries, 174 ISM Units, 815 branch/pay offices and 63 regional & sub-regional offices.

Recently, the government has reduced the overall contribution under ESIC Act from 6.5% to 4% with employers’ share cut to 3.25% from 4.75% earlier and employees’ share cut to 0.75% from 1.75% earlier, thus lowering the financial burden of employers while increasing the take home salary of the employees’. The move is expected to benefit 3.6 crore employees and 12.85 lakh employers.

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