Budget 2026: ESIC beneficiaries may receive great news! Plans are underway to expand coverage, and the salary limit could be increased to ₹30,000..

A major relief measure for salaried employees is being planned for Budget 2026. According to government sources, the government is seriously considering expanding the scope of the Employee State Insurance Corporation (ESIC). Under this proposal, the monthly salary limit for eligibility under ESIC could be increased from the current ₹21,000 to between ₹25,000 and ₹30,000.

If this proposal is included in the budget, millions of new employees will come under the purview of ESIC and will benefit from free medical treatment, healthcare facilities, and social security.

What is ESIC and why is it so important?
The Employees' State Insurance Corporation (ESIC) is a social security institution of the Government of India. Its objective is to provide employees in the organized sector and their families with facilities such as free medical treatment, cash benefits during illness, maternity benefits, and assistance in case of accidents and disability.

ESIC is a kind of government health insurance + social security cover, to which both the employee and the employer contribute.

What is the current ESIC limit?
Currently, according to ESIC rules, employees earning up to ₹21,000 per month are covered under ESIC. Employees earning more than this amount are excluded from the scheme, even if they have to take private health insurance. The government last increased this limit in 2016, when it was raised from ₹15,000 to ₹21,000.

What changes are possible in Budget 2026?
According to sources, the government is considering increasing the ESIC salary limit to between ₹25,000 and ₹30,000 per month. The aim is to cover middle-class and lower-middle-class employees, particularly those in the private sector, MSMEs, and the service industry. If this change is implemented, there could be a significant increase in the number of employees covered under ESIC.

How many people could benefit from this? According to government data, currently, approximately 13-14 crore people (employees + families) are covered under ESIC. After the limit is increased, millions of new employees and their families could come under the purview of this scheme. This is especially true for employees whose salaries are between ₹22,000 and ₹30,000 and who are currently outside the scope of any government health coverage.

What benefits do employees receive?
Key benefits under ESIC:

Completely free treatment (in ESIC hospitals and empanelled hospitals)
Treatment for the entire family, along with the employee
Cash allowance during illness
Maternity benefits
Pension in case of accident or disability
Facilities for long-term treatment and surgery
This coverage is considered much cheaper and more comprehensive compared to private health insurance.

ESIC Limit Changes: Then and Now
Year    Salary Limit (₹/month)
Before 2010    10,000
2010-2016    15,000
2016-Present    21,000
Budget 2026 (Expected)    25,000-30,000
Why might the government take this step?
There are some important reasons behind this:

Increase in inflation
A salary of ₹21,000 is not what it used to be
Private health insurance is becoming expensive
Premiums are becoming a burden for the middle class
Expansion of Social Security
Providing a government safety net to more and more employees
Strengthening the Organized Workforce
Will it affect employers?
Yes, but to a limited extent.

In ESIC:

Employee contribution: 0.75%
Employer contribution: 3.25%
Increasing the limit will increase the contribution of some employers, but in return, employees will get better security.

A big relief for the middle class?
If the increase in the ESIC salary limit is announced in Budget 2026, it could be a major relief for middle-class employees. It will result in direct savings on healthcare expenses and could prove to be a strong step towards social security. Now everyone's eyes are fixed on the announcement of Budget 2026.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.