Dear Seniors,
Kindly help confirm when the reduced rate of contribution of ESIC is to be implemented. Also, there was a notification that ESIC has increased the ESIC limit to Rs. 21,000/- instead of Rs. 15,000/-. Kindly assist with the implementation of the same as well.
From India, Chandigarh
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Kindly help confirm when the reduced rate of contribution of ESIC is to be implemented. Also, there was a notification that ESIC has increased the ESIC limit to Rs. 21,000/- instead of Rs. 15,000/-. Kindly assist with the implementation of the same as well.
From India, Chandigarh
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Dear Team,
Only a notification has been released. For implementation, it will take some time due to technical reasons involving modifications in the new software. The adjustment includes a reduction in employee contributions by 1% (from 1.75%) and employer contributions by 1% (from 4.75%).
Thank you.
From India, Hyderabad
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2Only a notification has been released. For implementation, it will take some time due to technical reasons involving modifications in the new software. The adjustment includes a reduction in employee contributions by 1% (from 1.75%) and employer contributions by 1% (from 4.75%).
Thank you.
From India, Hyderabad
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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.
From India, Thane
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From India, Thane
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Centre Plans to Lower ESI Contribution Rate to 4%
Employers are to contribute 3%, with 1% coming as the 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 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. 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 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 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.
Expansion Timeline
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.”
Regards
From India, Gurgaon
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Employers are to contribute 3%, with 1% coming as the 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 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. 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 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 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.
Expansion Timeline
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.”
Regards
From India, Gurgaon
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Proposal to Reduce ESI Rate
This refers to the new proposal for the reduction in rates of ESI. It is a good gesture by the government to consider reducing ESI rates for employers and employees. I request the government and the Minister for Labour and Employment to ensure that the benefits of ESI are received by the needy, hapless workers who have to visit several offices to get sickness benefits, medical reimbursement, and medical treatment for themselves and their dependents.
I also request the Minister to assist senior citizens who are requesting an increase in EPS pensions, as many have passed away receiving only Rs. 1000, which is insufficient to buy even medicines for themselves and their beloved family members.
ESI to EMI - Change Requested
The ESI name needs to be changed to E.M.I., meaning Employees Medical Insurance. It is about medical treatment, medical reimbursement, and 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, as E.S.I doesn’t convey the correct meaning. Today, many things have had their names changed, and it is high time that ESI, which serves a majority of employees and dependents, should also change to E.M.I to convey the correct meaning of what it stands for.
Everyone knows about the MB Act, MW, PWA, FA, TA Rule, LTA Rule, PL Encashment, etc. ESI is mainly about the medical problems of the employees and their dependents. Hence, it is best to change or amend it to EMI instead of ESI. Many employees and even company management ask what ESI is, causing confusion. Employees who contribute are helpless regarding ESI. For middle and lower-level employees, this facility is a great help and must serve its purpose.
We request the Minister, Government, and concerned Labour and Employment Department to please recommend changing ESI to EMI since State Insurance does not convey the correct meaning when employees and their dependents' main need is medical. It is the need of the workers, employees, including some officers who draw less salary in cases of sickness, accident, disablement, etc., and they contribute for their medical needs.
Kind regards and thanks for the concern for the needy employees.
C.N. Khan, HR Consultant, [Email Removed For Privacy Reasons] 24.2.2019.
From India, Mumbai
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This refers to the new proposal for the reduction in rates of ESI. It is a good gesture by the government to consider reducing ESI rates for employers and employees. I request the government and the Minister for Labour and Employment to ensure that the benefits of ESI are received by the needy, hapless workers who have to visit several offices to get sickness benefits, medical reimbursement, and medical treatment for themselves and their dependents.
I also request the Minister to assist senior citizens who are requesting an increase in EPS pensions, as many have passed away receiving only Rs. 1000, which is insufficient to buy even medicines for themselves and their beloved family members.
ESI to EMI - Change Requested
The ESI name needs to be changed to E.M.I., meaning Employees Medical Insurance. It is about medical treatment, medical reimbursement, and 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, as E.S.I doesn’t convey the correct meaning. Today, many things have had their names changed, and it is high time that ESI, which serves a majority of employees and dependents, should also change to E.M.I to convey the correct meaning of what it stands for.
Everyone knows about the MB Act, MW, PWA, FA, TA Rule, LTA Rule, PL Encashment, etc. ESI is mainly about the medical problems of the employees and their dependents. Hence, it is best to change or amend it to EMI instead of ESI. Many employees and even company management ask what ESI is, causing confusion. Employees who contribute are helpless regarding ESI. For middle and lower-level employees, this facility is a great help and must serve its purpose.
We request the Minister, Government, and concerned Labour and Employment Department to please recommend changing ESI to EMI since State Insurance does not convey the correct meaning when employees and their dependents' main need is medical. It is the need of the workers, employees, including some officers who draw less salary in cases of sickness, accident, disablement, etc., and they contribute for their medical needs.
Kind regards and thanks for the concern for the needy employees.
C.N. Khan, HR Consultant, [Email Removed For Privacy Reasons] 24.2.2019.
From India, Mumbai
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ESI Notification - 2019 (1) CONTRIBUTION REDUCED TO 4% W.E.F JULY 19.pdf