**Executive Summary**
This document presents the response to Unstarred Question No. 1556 in Lok Sabha regarding the salary limit for workers in the unorganized sector to avail ESI facilities, to be answered on 09.02.2026. It clarifies the applicability of the Code on Social Security (CoSS), 2020, and addresses the feasibility of setting up new ESI dispensaries in specific locations. The response outlines current wage ceiling revisions and existing facilities.
**Key Points / Main Content**
* **Code on Social Security (CoSS), 2020:**
* The government enacted CoSS, 2020 to extend social security to all employees and workers in both organized and unorganized sectors.
* Chapter IV of CoSS, 2020, related to Employees' State Insurance Corporation (ESIC), applies to establishments with ten or more employees.
* The wage ceiling under ESI Scheme is applicable to the organised sector.
* **Wage Ceiling Revision:**
* The revision of the wage ceiling is undertaken periodically.
* The last revision in wage ceiling for coverage under ESI Scheme was done w.e.f. 01.01.2017, where the wage limit was raised from Rs. 15,000/- per month to Rs. 21,000/- per month.
* **ESI Dispensaries:**
* Setting up ESI dispensaries is an ongoing process.
* ESIC approves new ESI dispensaries based on the population of Insured Persons (IP) in an area according to ESIC norms.
* Norms require a minimum of 3,000 IPs/Projected IPs within an 8-km radius for setting up a two-doctor dispensary (or 2,000 in hilly areas).
* The present IP population in the catchment areas of Nedunkandam and Kumily do not fulfill the norms, therefore it is not feasible to set up ESI dispensaries at those locations at present.
* Currently, there are three ESI dispensaries at Kattappana, Thodupuzha, Kannan Devan Hills, and one Dispensary-cum-Branch Office at Munnar already functioning in Idukki district of Kerala.
**Impact Analysis**
**Stakeholder: Workers in the Organized Sector**
* **Impact:** Affected by the applicability of ESI Scheme under the CoSS, 2020, based on the established wage ceiling and number of employees in their establishment.
* **Action Required:** Ensure compliance with the ESI Scheme if the establishment meets the criteria of having ten or more employees and the workers meet the wage ceiling.
**Stakeholder: Workers in the Unorganized Sector**
* **Impact:** Coverage under ESI is determined by CoSS, 2020 provisions, though the applicability details were not specified.
* **Action Required:** No immediate action specified in the document.
**Stakeholder: Residents of Nedunkandam and Kumily in Idukki**
* **Impact:** Request for setting up ESI dispensaries in their area is currently not feasible due to not fulfilling the requisite norms for Insured Persons (IP) population.
* **Action Required:** None, but existing ESI dispensaries in the Idukki district are noted.
Key Entities Referenced
Employees' State Insurance (ESI) Scheme: A social security scheme providing medical and other benefits to employees and their families. The scope of this policy relates to the salary limit for workers to avail ESI facilities.
Code on Social Security (CoSS), 2020: A legislation intended to extend social security to all employees and workers. Chapter IV of the CoSS, 2020 relates to Employees' State Insurance Corporation (ESIC).
Employees' State Insurance Corporation (ESIC): An organization responsible for administering the ESI scheme.
Ministry of Labour and Employment: The ministry responsible for matters relating to labour welfare, social security, and ESI.
Idukki, Kerala: The district in Kerala mentioned specifically in regards to setting up of ESI dispensaries.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 1556
TO BE ANSWERED ON 09.02.2026
SALARY LIMIT FOR WORKERS IN UNORGANIZED SECTOR TO AVAIL
ESI FACILITIES
1556. SHRI M K RAGHAVAN:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)whether the Government has received any proposal for the
increase in the salary limit from Rs. 21,000 to Rs. 30,000 for
workers in the unorganized sector to avail medical treatment at
Employees' State Insurance (ESI) hospitals/dispensaries;
(b) if so, the details thereof;
(c) whether any expert committee or stakeholders recommended an
increase in the ESIC Salary threshold and if so, the details thereof;
(d) whether the Government is likely to consider to set up ESI
dispensaries at Nedunkandam and Kumily in Idukki due to the
prescence of large number of workers especially in the plantation
sector; and
(e) if so, the details thereof?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (c): The Government has enacted Code on Social Security
(CoSS), 2020 with the goal to extend social security to all employees
and workers either in the organized or unorganized or any other
sectors and for matters connected therewith or incidental thereto.
However, Chapter IV of the CoSS, 2020 relating to Employees’ State
Insurance Corporation (ESIC), will apply on every establishment as
defined under Section 2(29) read with the first schedule of the CoSS,
2020, in which ten or more persons are employed. Accordingly, the
wage ceiling under ESI Scheme is applicable to the organised sector.
Contd..2/-:: 2 ::
The revision of wage ceiling is undertaken periodically
from time to time. The last revision in the wage ceiling for coverage
under ESI Scheme was done w.e.f. 01.01.2017, wherein the wage
limit was raised from Rs. 15,000/- per month to Rs. 21,000/- per month.
(d) & (e): Setting up of ESI dispensaries is an ongoing process. ESIC
gives approval for setting up of new ESI dispensaries based on
population of Insured Persons (IP) in an area in accordance with the
norms of ESIC. As per these norms, for setting up of a two doctor
dispensary, a minimum of 3,000 IPs/Projected IPs, in the next three
years, within an 8-km radius, is required. In hilly areas, the minimum
requirement is 2,000 IPs/ IPs/Projected IPs.
The present IP population in the catchment areas of
Nedunkandam and Kumily do not fulfil the requisite norms.
Accordingly, it is not feasible, at present, to set up ESI dispensaries
at these locations, However, there are 03 ESI dispensaries viz.
Kattappana, Thodupuzha, Kannan Devan Hills and 01 Dispensary-cum
Branch Office at Munnar already functioning in Idukki district of
Kerala.
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