Whether Ex-Servicemen Are Covered Under ESI Scheme.

Hi All,

Some ex-servicemen are engaged as consultants in the organization. They have been paid a Retainership fee, and TDS is deducted on the Retainership fee as per applicable law. Kindly note the following points:

1. Whether consultants are covered under the ESI Scheme if the Retainership paid is less than Rs. 10,000/-
2. The Government of India covers all ex-service personnel under the Ex-servicemen Contributory Health Scheme. The scheme is compulsory for all ex-servicemen with no age restrictions, and it is applicable for a lifetime. The scheme provides superior benefits compared to the ESI Scheme. Additionally, ex-servicemen are drawing a pension from the defense service.

Given the circumstances explained above, kindly provide your detailed opinion on whether the aforementioned consultants fall under the purview of the ESI Act.

Regards,
N Swamy.

Dear Mr. N. Swamy,

It is an additional burden if ex-service personnel are again covered under ESI. As you mentioned, since they are already covered under the government-contributed ESI health scheme, it is not necessary to cover them again.

Regards,
L. Kumar

Dear Kumar,

Thank you. Is there any amendment regarding this issue? Kindly forward the same, as the authorities are insisting on coverage under the act.

Regards,
Swamy

Dear Mr. Swamy,

I do not have the amendment with me. I shall send it to you once I receive it.

With regards,

L. Kumar