# What happens when employee is not eligible to Employees State Insurance (ESI) scheme contribution?

**URL:** <https://community.greythr.com/t/what-happens-when-employee-is-not-eligible-to-employees-state-insurance-esi-scheme-contribution/3061>\
**Category:** Statutory Compliance\
**Tags:** paymentofwages, esic\
**Created:** [July 21, 2021, 7:07am UTC](https://community.greythr.com/t/what-happens-when-employee-is-not-eligible-to-employees-state-insurance-esi-scheme-contribution/3061 "2021-07-21T07:07:03Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![Manjunath](https://avatars.discourse-cdn.com/v4/letter/m/c6cbf5/32.png) [@Manjunath](https://community.greythr.com/u/Manjunath)\
**Post date:** [July 21, 2021, 7:07am UTC](https://community.greythr.com/t/what-happens-when-employee-is-not-eligible-to-employees-state-insurance-esi-scheme-contribution/3061/1 "2021-07-21T07:07:03Z")

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Hi,

When the wage of an employee exceeds Rs21000 per month, What happens to her Employees State Insurance (ESI) scheme ?  
Will she be not not covered and contribution from her wages gets stopped?

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**Author:** ![Deepti](https://avatars.discourse-cdn.com/v4/letter/d/ee7513/32.png) [@Deepti](https://community.greythr.com/u/Deepti)\
**Post date:** [July 21, 2021, 7:22am UTC](https://community.greythr.com/t/what-happens-when-employee-is-not-eligible-to-employees-state-insurance-esi-scheme-contribution/3061/2 "2021-07-21T07:22:57Z")

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Hi Manjunath,

Employee’s contribution will be stopped provided the respective Contribution has ended. But she will be eligible to get the benefits till the next Benefit period. Below are the details of Contribution and the respective Benefit Periods:

| Contribution Period | Cash Benefit Period |
| --- | --- |
| 1st April to 30th Sept. | 1st Jan of the following year to 30th June |
| 1st Oct to 31st March of the year following. | 1st July to 31st December. |

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**Author:** ![Arpana](https://avatars.discourse-cdn.com/v4/letter/a/53a042/32.png) [@Arpana](https://community.greythr.com/u/Arpana)\
**Post date:** [July 21, 2021, 7:38am UTC](https://community.greythr.com/t/what-happens-when-employee-is-not-eligible-to-employees-state-insurance-esi-scheme-contribution/3061/3 "2021-07-21T07:38:54Z")

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Agree with `Deepti.`

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**Author:** ![Habeeb](https://avatars.discourse-cdn.com/v4/letter/h/e36b37/32.png) [@Habeeb](https://community.greythr.com/u/Habeeb)\
**Post date:** [July 22, 2021, 6:35am UTC](https://community.greythr.com/t/what-happens-when-employee-is-not-eligible-to-employees-state-insurance-esi-scheme-contribution/3061/4 "2021-07-22T06:35:43Z")

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They will get nine months of coverage.  
Thank you.

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**Author:** ![jagadeesh.r](https://avatars.discourse-cdn.com/v4/letter/j/73ab20/32.png) [@jagadeesh.r](https://community.greythr.com/u/jagadeesh.r)\
**Post date:** [July 22, 2021, 2:18pm UTC](https://community.greythr.com/t/what-happens-when-employee-is-not-eligible-to-employees-state-insurance-esi-scheme-contribution/3061/5 "2021-07-22T14:18:32Z")

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Once employee gets wages hike and exceed wage cieling limit in between the contribution period but the contribution will continue till end of contribution period ( Apr to Sep & Oct to Mar). However, the employee can avail benefits for next 9 months based on benefit period.