ESI - Contract Labor Medical Benefits!

I want to know abour contract labor medical benifts.what is the responsibility of principal employer where employee salary is more than 21000 …and he is out of ESI covergae slab and no esi contribution is deducted or submitted!

My response:

  1. Regarding medical benefits, there is no differentiation between regular employee or contract employee. Coverage is similar to all eligible employees. There is a whole section in the ESI ACT for various types of treatment, which possibly cannot be fitted here in this mail. The link to the benefit page is

  2. Regarding responsibility of the principal employer, again, coverage under the Act remains the same for regular employees or contract employees. If the monthly wages exceed Rs.21,000 for normal employees and Rs.25,000 for disabled employees (exclusive of overtime payment), then those employees need not be covered under ESIC scheme. They will move to their respective Company’s medical plans for employees. The principal employer is not obliged to cover contract employees under their employee medical plans.

Disclaimer: The above statements are our personal opinion, purely meant for sharing of academic knowledge and not to be treated as legal advice. Kindly contact your legal advisor for any legal opinion.

Trust this helps.



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