R.N.Khola
Labour Laws & Ir
PL Kanthan
Proprietor
+3 Others

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Dear Seniors,
Kindly help confirm when is the Reduced rate of contribution of ESIC to be implemented.
Also there was a notification that ESIC has increased the ESIC limit to Rs 21000/- instead of Rs.15000/- presentation. Kindly help on the implementation of the same as well.
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Dear ,
Only Notification was released , for implementation it will take some time, due to technical reasons modification in new software.for employees reduced contribution -1% from 1.75% & employers 3% from 4.75%.
However, the contribution is to be made at reduced rate only and it is applicable for 2 years only to those areas where the scheme is launched first time.
Centre plans to lower ESI contribution rate to 4%

Employers to contribute 3%, with 1% coming as employee contribution.

The Centre has proposed a reduced rate of contribution from companies towards the health insurance scheme for workers in areas where it plans to set up a dispensary or a hospital for the first time.

The ministry has proposed that employers contribute four per cent, instead of 6.5 per cent of a worker’s income towards the Employees’ State Insurance (ESI) scheme, as per the draft rules dated July 25. At present, the ESI Corporation has a presence in certain parts of 393 districts of the country.

The corporation has plans to cover all the states and expand the scheme to India’s 683 districts by March next year. ESIC is present in all states, except the north-eastern states of Manipur, Sikkim, Arunachal Pradesh and Mizoram.

Workers drawing salary up to Rs.15,000 per month are entitled to medical benefits for treatment during incidences of sickness, maternity, disability and death due to injury during work. The ESI Act applies to factories with 10 or more workers and it is also applicable to shops, hotels, restaurants, cinemas and road transport undertakings.

While 4.75 per cent of a worker’s salary goes towards ESI as employer’s contribution, 1.75 per cent of the income goes as the employee’s share. This is proposed to be decreased to three per cent and one per cent for two years, respectively.

“Our plan is to expand ESI to all parts of the country. Since the medical facilities at places where we want to open a new dispensary or hospital will not be at par with our established units, we have decided to take less contribution from companies for a period of two years,” said a senior ESIC official, on condition of anonymity.

March 2017

The official said it would cover all parts of 393 districts by September-end this year and the entire country by March next year.

Trade unions suggested that ESI Corporation collaborate with private hospitals in the new areas to provide full medical treatment to workers.

“We welcome the expansion of ESI services to all the districts,” said AITUC Secretary DL Sachdev, “But taking less contribution means workers would not be provided full medical facilities that are otherwise available in the 393 districts. They should provide full facilities by tying up with private hospitals to ensure all medical treatments are available.”

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POROPOSAL TO REDUCE ESI RATE.
==================
This has ref. to the new proposal of Reduction in rates of ESI
IT IS A GOOD GESTURE OF THE GOVT. TO CONSIDER REDUCING ESI RATES FOR EMPLOYER & EMPLOYEES.
REQUEST THE GOVT. & MINISTER FOR LABOUR & EMPL. TO SEE THAT THE BENEFIT OF ESI IS RECEIVED BY THE NEEDY HAPLESS WORKERS WHO HAVE TO RUN TO SEVERAL OFFICES TO GET SICKNESS BENEFIT, MEDICAL REIMBURSEMENT & ALSO MEDICAL TREATMENT FOR THE EMPLOYEES & DEPENDENTS.
ALSO REQUEST THE MINISTER TO HELP THE SR.CITIZENS WHO ARE REQUESTING TO INCREASE EPS PENSION SINCE MANY HAVE DIED GETTING RS.1000 UNABLE TO BUY EVEN MEDICINES FOR THEM & THEIR BELOVED FAMILY MEMBERS..
ESI TO EMI - CHANGE REQUESTED.

ESI name Need to be changed as E.M.I. Meaning
EMPLOYEES MEDICAL INSURANCE.
It is about the
Medical treatment, Medical reimbursement; Medical problems in total.
Change is not only required but it is very important to say it is for EMI i.e., EMPLOYEES MEDICAL INSURANCE & E.S.I doesn’t give or convey correct meaning. Today; many things names are changed & it is high time that ESI which has to serve a majority of employees & dependents should also change to E.M.I to convey correct meaning of what it stands for.
Everybody knows MB Act, MW, PWA, FA. TA Rule, LTA Rule, PL Encashment etc., ESI is mainly about the MEDICAL PROBLEMS of the employees & their dependents. Hence, it is best to change / amend it to EMI instead of ESI. Many employees and even Co.Mngments asks what is ESI. so confusion that employees who contribute are helpless reg. ESI. For the middle & lower level employees, this facility is a great help & it must serve the purpose.
We request the Minister, Govt. & concerned Labour & Empl.Dept. to
Please recommend to change ESI to EMI since State Insurance do not give or convey the correct meaning; when employees & his dependents main need is MEDICALl.
It is the need of the worker, employees including some officers who draw less salary in case of Sickness, Accident, disablement etc.
And they contribute for their Medical needs. .
KIND REGARDS & THANKS FOR THE CONCERN FOR THE NEEDY EMPLOYEES
C.N. Khan, HR Consultant, 24.2.2019.
Which month applicable Revised ESI Contribution Rates (Employer 4%, Employee 1%)
Plz wait for the final notification which will tell you the date of applicability of the reduced rate of contribution.
R N KHOLA
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