Centre Plans to Lower ESI Contribution Rate to 4%
Employers are to contribute 3%, with 1% coming from employee contributions.
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.
393 Districts
The ministry has proposed that employers contribute four percent, instead of 6.5 percent of a worker’s income towards the Employees’ State Insurance (ESI) scheme, as per the draft rules dated July 25, reviewed by The Hindu. At present, the ESI Corporation has a presence in certain parts of 393 districts of the country.
The corporation 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 a salary of 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 is also applicable to shops, hotels, restaurants, cinemas, and road transport undertakings.
While 4.75 percent of a worker’s salary currently goes towards ESI as the employer’s contribution, 1.75 percent of the income goes as the employee’s share. This is proposed to be decreased to three percent and one percent 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 the 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.”
Source:
Centre plans to lower ESI contribution rate to 4% - The Hindu
Employers are to contribute 3%, with 1% coming from employee contributions.
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.
393 Districts
The ministry has proposed that employers contribute four percent, instead of 6.5 percent of a worker’s income towards the Employees’ State Insurance (ESI) scheme, as per the draft rules dated July 25, reviewed by The Hindu. At present, the ESI Corporation has a presence in certain parts of 393 districts of the country.
The corporation 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 a salary of 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 is also applicable to shops, hotels, restaurants, cinemas, and road transport undertakings.
While 4.75 percent of a worker’s salary currently goes towards ESI as the employer’s contribution, 1.75 percent of the income goes as the employee’s share. This is proposed to be decreased to three percent and one percent 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 the 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.”
Source:
Centre plans to lower ESI contribution rate to 4% - The Hindu