After minimum wage revision, Karnataka pushes Centre for change in ESI ceiling

Key points

• With the revised minimum wages notified on Saturday and with an average hike of about 60%, the Karnataka government is pushing the Centre to revise the ESI ceiling from the current ₹21,000 a month to ₹30,000 a month.
• This is because a large part of the workforce, now covered under the ESI facility, will be out of the ESI cover for medical benefits as they would breach the ₹21,000 a month ceiling with the revised minimum wages.
• “We have written to the Centre to revise the ceiling twice.
• We have also written to the Members of Parliament to revise the ceiling,” Labour Minister Santhosh Lad told The Hindu.
• He said that the State government would pursue the matter with the Centre.