State Insurance Scheme to Raise Wage Ceiling
Feb. 23 – India’s Employee State Insurance Corporation has agreed to raise the wage ceiling from Rs10,000 (US$216) to Rs15,000 (Us$324) per month under the ESI Scheme.
The social security scheme covers employees and their dependents during sickness, maternity, temporary or permanent physical disablement, death or injury during the time of employment.
The wage ceiling was increased to Rs15,000 due to rising living costs and in response to recommendations of the Parliamentary Standing Committee on Labor.
Contribution to the ESI Scheme comprises of an employer’s contribution and employee’s contribution at a specified rate with the rates revised regularly. Currently, an employee’s contribution rate is pegged at 1.75 percent of the wages and an employer’s is at 4.75 percent of wages payable.
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