ESI scheme to cover all districts by year end: Bhupender Yadav

ESI scheme to cover all districts by year end: Bhupender Yadav

Subject: Governance

Section: Government schemes

Context: The Union Minister for Labour and Employment, Bhupender Yadav, has said that the Employees’ State Insurance (ESI) Scheme will be implemented across the country by the end of 2022.

What is the Employees’ State Insurance Scheme of India (ESIC)?

• It is a multi-faceted Social Security Scheme designed to provide socio-economic protection to ’employees’ in the organised sector
  It is administered by a statutory corporate body called the Employees’ State Insurance Corporation.
• It protects employees against sickness, maternity, disablement, and death as a result of a work-related injury, as well as provides medical care to insured employees and their families

Who is eligible for ESI?

• With effect from January 1, 2017, the monthly wage ceiling for coverage of an employee is Rs. 21,000 per month
• It is the employer’s responsibility to enroll eligible employees in the ESIC program.

How are contributions made?

• The ESI Scheme is a self-funding program.
• Employer and employee contributions are primarily used to support the ESI funds, which are provided monthly at a fixed percentage of salaries received.
• State governments are also responsible for 1/8th of the cost of medical benefits
  The company contributes 3.25 percent and the employee contributes 0.75 percent for all employees earning Rs 21,000 or less per month in salary, for a total share of 4 percent.
• Another notable characteristic is that an employee’s insurance number remains the same as long as he or she remains within the ESIC wage limit.
• Changing jobs will not affect an employee’s insurance status, and his or her insurance number will remain the same.

Is it mandatory for the Employer to register under the scheme?

Yes, under Section 2A of the ESI Act and Regulation 10-B, it is the employer’s legal responsibility to register their factory/ establishment under the ESI Act within 15 days of its applicability to them
Employees State Insurance Corporation:

It is a statutory body under the ownership of Ministry of Labour and Employment..

The fund is managed by the Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948