Ex-Service Employees Are "Eligible Or Not" For ESI

Hi Everybody,

I have one doubt. Our organization has two ex-service employees. They have ex-service cards (health, canteens, and identity cards). Are they "eligible or not" for ESIC? Their salaries are gross Rs. 9000/- and Rs. 6000/- per month.

From
Nagendra
Hyderabad

As per the ESI Act, you need to cover them under ESI. The Act does not give exemptions for such cases, i.e., where a few ex-servicemen are employed among many other employees coming under ESI cover.

Hi,

They were ex-servicemen; hence, they enjoyed those privileges. However, when they transition to private services, they are required to adhere to all the regulations applicable to other regular servicemen. ESI will be applicable to them.

Regards,
Jitendra

Dear Mradul,

You can add any employee who is under the upper limit of the salary or wages, i.e., $10,000. Every employee can benefit from the ESIC under this limit, and the procedure is the same.

Regards,
Mradul

Hi friend,

Being an ex-service man, I find it's my duty to clarify the query you have raised.

The ex-service men are provided with a medical card as a part of the post-service welfare scheme, which falls under the purview of the Ministry of Defence's sub-division, Zainik Welfare. Ex-service men are given this card to obtain medical assistance from nearby Zainik hospitals. In places where such facilities do not exist, they are reimbursed with Rs. 100 as compensation. It is important to note that this privilege is extended not only to the ex-serviceman but also to their families.

The ESI Act pertains to the welfare of the employees concerned with a particular factory. This is an insurance scheme and not a form of privilege. The canteen facilities are entirely irrelevant to any factory act.

I hope you are satisfied with this explanation. If you have any further doubts regarding ex-servicemen, please feel free to contact me.

Karunadasp

Hi Nagendra,

The ESI Act covers employees who have a salary of less than Rs 10,000 per month. Their past employment has no relevance whatsoever. The health scheme you have referred to is ECHS, applicable to ex-servicemen who are entitled to a pension. The ECHS is a new scheme started in 2003, and even those ex-servicemen who retired prior to April 2003 are entitled to becoming members on payment of a sum dictated by the pension drawn.

The ex-servicemen employed after their military service and entitled to ESI have the added advantage of using either scheme for themselves and their families. Yes, the smart card issued to them is common for ECHS and canteen facilities. Again, canteen facilities are a special privilege to serving and retired servicemen and their dependents.

I am an ex-serviceman who took premature retirement after 22 years in the Army and am currently deeply involved in my passion - HR. Hope I have been of some assistance.

Regards,
Ajay

I am also an ESM and presently running a security agency.

All ESM are being forced to pay ESI. This is ridiculous as they are already members of ECHS, which is compulsory. Logically, a person will get admitted to only one hospital, so why should they be made to pay at two places? Recently, PAU won a case against ESI on the ground that if they have their own full-fledged hospital, then why should employees pay ESI. ESI for ECHS cardholders should be optional and not compulsory.

Col Darshan Dhillon