After minimum wage revision, Karnataka pushes Centre for change in ESI ceiling
Karnataka has revised its minimum wages, increasing them by approximately 60%, and is now urging the Centre to raise the ESI ceiling from ₹21,000 to ₹30,000. This change is necessary as many workers will exceed the current ceiling and lose their medical benefits. The state government has communicated its request to the Centre and is committed to pursuing this matter further.
- ▪The Karnataka government has increased minimum wages by about 60%.
- ▪The current ESI ceiling of ₹21,000 is deemed insufficient for the revised wages.
- ▪Labour Minister Santhosh Lad has stated that the government will continue to push for a revision of the ESI ceiling.
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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.
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