ESI Salary Ceiling to Rise to ₹30,000; Private Hospital Referrals Approved
In a significant move aimed at widening social security coverage, the Prime Minister’s Office (PMO) is set to approve a proposal to raise the eligible salary cap under the Employees’ State Insurance (ESI) scheme from the current ₹21,000 to ₹30,000 per month. This change could bring nearly one crore more workers under the benefit umbrella of ESI, officials say.
What’s Changing
- Salary Limit Increase: The present ₹21,000 salary ceiling has remained unchanged for about eight years. Raising it to ₹30,000 will allow more employees to access ESI benefits.
- Private Hospital Referrals: For cases where ESI hospitals lack required facilities or equipment, the policy will permit referrals to reputed private hospitals. Previously, referrals were strictly limited to government‐run hospitals.
Stakeholder Reactions
- Labour Ministry & ESI Corporation: These bodies are preparing to implement the change once it gets PMO approval.
- Worker Unions: Various trade unions—including the Bharatiya Mazdoor Sangh (BMS)—had pushed for a higher ceiling (as much as ₹42,000), but a consensus was reached at ₹30,000 due to employer objections.
Context & Scope
- Why It Matters: With roughly one crore workers excluded from ESI coverage under the old limit, this revision is expected to substantially increase access to medical and insurance benefits.
- Infrastructure Realities: India currently has 159 ESI hospitals; 102 are run by state governments and the rest directly by the ESI Corporation. Given varying capacities in different facilities, the option to refer patients to private hospitals is seen as a necessary supplement.
