Employee Feels ESI Is a Waste Due to Lack of Nearby Hospitals – Can They Opt Out?

If an employee does not want to pay for ESI as they consider it a waste of money, they may express concerns about the lack of useful hospitals nearby when it comes to the ESI scheme. They may wonder if it is possible to ask their employer not to deduct ESI.

You cannot say ESI is a waste of money. It's very useful and covers many things. I understand that for people with lower incomes, Rs 50 or Rs 100 may be a significant amount, but ESI is still very useful. Through ESI, one can access free facilities and insurance as well.

Employee's Ability to Opt-Out of ESI

Regarding your question, as per my knowledge and understanding, an employee cannot ask their employer whether to deduct ESI or not. ESI has its own rules and regulations, and employees are covered based on their gross salary.

Thank you.

Mr. Gunjansingh is correct. It is a statutory obligation on the part of the employer and employees too. It is a social welfare measure and for the betterment of employees. If the gross salary is more than 15k, ESIC is not applicable.

Thanks,
Bijay

The benefits under the Employees' State Insurance Act and the rules/regulations framed thereunder are to be availed in the contingencies of sickness, maternity, and employment injury. The provision of medical benefits is one of the benefits among others. In my opinion, considering the high costs of medical facilities in the present day, it would not be appropriate to say that ESI medical services are a mere waste. Medical facilities are also available to the family of the Insured Person.

If there are any shortcomings in the ESI medical services to which an Insured Person is attached, they can approach appropriate authorities, including the IMO in charge of the dispensary as well as the Medical Superintendent of the Hospital, for improvement. It is further added that as per Rule 52 of ESI (Central) Rules, 1950, employees with average daily wages up to and inclusive of Rs. 100/- are exempted from payment of their 1.75% contribution.

Regards;