After 8-year wait, Centre to reconsider ESI salary cap; committee to study issue

New Delhi: A committee will be formed to examine the possibility of revising the maximum salary limit for eligibility under the Employees’ State Insurance (ESI) scheme, which currently stands at ₹21,000.

Union Labour and Employment Minister Mansukh Mandaviya made the announcement on Friday during the 196th meeting of the Employees’ State Insurance Corporation (ESIC) held in Shimla, Himachal Pradesh.

The long-standing demand for an increase in the salary cap, which was last revised in 2017, was not on the agenda of the corporation's 196th meeting. However, the issue was discussed for about 20 minutes after the trade union representatives strongly raised the demand during the meeting. However, the trade unions opposed the minister's statement that a committee could be set up to study the issue.

Union representatives say that it may take some time for the committee to be formed, for them to conduct a study and for the government to make a decision on it. 

The maximum salary for joining the ESI scheme, which provides benefits including free medical treatment worth Rs 10 lakh per year, was raised to Rs 21,000 in 2017. However, over the years, around 80 lakh workers have been excluded from ESI membership due to the increase in salaries. Therefore, the workers are demanding a timely increase in the wage ceiling.

Union representatives also urged the withdrawal of the directive requiring ESI hospital patients to be referred only to government hospitals in the absence of necessary facilities. In response, the minister clarified that the decision can be left to the discretion of the respective hospital superintendents.

The scope of ESI coverage will be increased

The minister also announced the re-launch of SPREE (Scheme to Promote Registration of Employers/Employees) with the objective of expanding ESI coverage across the country. Originally introduced in 2016, the scheme successfully facilitated the registration of over 88,000 employers and 1.02 crore employees.

The renewed SPREE will be open from 1st July to 31st December 2025, offering a one-time opportunity for unregistered employers and left-out workers, including contractual and temporary staff, to enrol under the ESI Act. Under the scheme, employers registering during this period will be treated as covered from the date of registration or as declared by them, while newly registered employees will be covered from their respective dates of registration.

Amnesty Scheme

The ESI Corporation also approved the Amnesty Scheme – 2025, a one-time dispute resolution window from 1st October 2025 to 30th September 2026 aimed at reducing litigation and promoting compliance under the ESI Act. For the first time, disputes along with cases involving damages and interest regarding coverage are included. The regional directors have been empowered to withdraw cases where contributions and interest have been paid, and also to withdraw cases filed against insured persons over five years ago where no notices were issued.

The Corporation has approved the engagement of Yoga therapists and Panchakarma technicians/attendants in ESIC hospitals.

Pilot project with charitable hospitals

The Corporation approved a pilot project to improve healthcare access for ESI beneficiaries by partnering with charitable hospitals in underserved areas. These hospitals will provide comprehensive services—from OPD to emergency care—ensuring affordable, quality treatment while advancing ESIC’s mission of social security and welfare. The pilot will be initiated in a few districts of the country.