Will government raise Rs 21,000 ESIC wage ceiling? Here's what Labour Ministry said

The Employees' State Insurance Corporation (ESIC) scheme provides medical and cash benefits to insured employees and their dependents in the event of sickness, disability or death. The scheme which was earlier limited to workers in the organised sectors, now covers unorganised as well as gig and platform workers under Section 45 of the Code on Social Security, 2020.

The scheme has a wage limit of Rs 21,000 (Rs 25,000 for those with disabilities), for employees who want to enroll. The Ministry of Labour and Employment, which runs the scheme, was asked if it has plan to raise the ESIC wage ceiling from Rs 21,000 at present,

Will the government increase the ESIC wage ceiling of Rs 21,000?


NK Premachandran, member of Parliament, on July 27, 2026, raised a query in Lok Sabha as to whether the government has any plans to increase the wage ceiling of the ESIC scheme? The MP also asked if the government plans to extend the ESIC scheme coverage to more sectors, and if the government intends to relax the attendance and other restrictions on super specialty treatment of seasonal workers including cashew workers?

Replying to Premachandran’s queries, Shobha Karandlaje, Minister of State for Labour and Employment, said that the government increases the ESIC wage ceiling periodically, but she didn’t announce any proposal or timeline to raise it.

Karandlaje said the wage ceiling was last revised with effect from January 1, 2017, when it was raised from Rs 15,000 per month to Rs 21,000 (Rs 25,000 for persons with disabilities).

Has the government proposed to extend the ESIC scheme coverage to more sectors?

Answering the query on whether the government has proposed extending the scheme benefits to employees from more sectors, Karandlaje says the Employees’ State Insurance Act, 1948, has now been subsumed in the Code on Social Security, 2020, which has been implemented w.e.f. November 21, 2025.

Under Section 2(29) of the Code on Social Security, 2020, an 'establishment' broadly covers places where industrial, commercial or other specified economic activities take place.

"It includes factories, motor transport undertakings, newspaper establishments, audio-visual production units, construction establishments, plantations, mines, ports and areas where dock work is undertaken," says Karandlaje.

ESIC now covers unoragnised sector employees, gig workers

Karandlaje says the Section 45 of the Code on Social Security, 2020, gives the central government the authority to create a scheme that offers ESIC benefits to the unorganised workers, the gig workers and the platform workers.

Has the government proposed to relax attendance and other restrictions imposed on super specialty treatment of seasonal workers?

Karandlaje says at present, there is no such provision under the ESIC scheme to relax the attendance, and restrictions imposed on super specialty treatment of seasonal factory workers as they are outside the coverage of the ESIC.