ESIC Clarification on Non-Absorbable Qualification Pay for Nursing Cadre

Jul 28, 2026 | by TeamLease RegTech Legal Research Team

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Labour ComplianceThe Employees' State Insurance Corporation (ESIC) on Jul 23, 2026, has issued a clarification regarding the merging of Qualification Pay (Non-Absorbable) granted as additional increments to Nursing Cadre employees. The clarification follows multiple references received from field offices and is based on guidance from the Ministry of Health & Family Welfare. The Ministry, through its letter dated June 1, 2026, clarified the treatment of such additional increments.

The Ministry has stated that the additional increments granted as Qualification Pay are specifically designated as "non-absorbable". Consequently, these increments shall not be treated as part of the Basic Pay for the purpose of pay fixation on promotion, financial upgradation under the Modified Assured Career Progression (MACP) Scheme, or any other pay level revision.

Accordingly, ESIC has directed all concerned offices to ensure that Qualification Pay (Non-Absorbable) remains separate from Basic Pay and is not merged for any pay fixation or revision exercise. The clarification has been issued with the approval of the Medical Commissioner (M.A.). [File No. A-27012(11)/5/2024-MED7-Part(1) | I/4162624/2026]

 

 


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