The Ministry of Labour and Employment has, by way of a gazette notification, enhanced the ESI wage ceiling from Rs 15,000 per month to Rs 21,000 per month. This comes into effect from 01-Jan-2017.
As you are aware, the current limit is Rs 15,000 – in other words, employees who draw an ESI wage of more than Rs 15,000 cannot come under ESI currently. With effect from 01-Jan-2017, employees drawing an ESI wage of up to Rs 21,000 will need to become ESI members.
As far as your organization is concerned, you may see some of the current employees (whose salary is between Rs 15,000 and Rs 21,000) getting into ESI for the first time on account of the wage ceiling enhancement. Also, there could be an increase in the cost to company on account of employer ESI contribution to such employees (who get added to ESI).
Please implement this in payroll with effect from January 2017. Kindly consider the new wage ceiling for final settlement processing too.