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Hello Friends & seniors,

I am 101% in agreement with Mr. R. N. Dixit that the majority of staff are paying a lot of money in ESIC deductions yearly. However, due to a lack of facilities in ESIC hospitals or unavailability of doctors in their area, they are not able to take advantage of ESIC benefits. Consequently, they are always dissatisfied with their ESIC deductions, which are of no use to them.

I would like to request everyone to please oppose this law by sending your objections to the following address:

To,
Shri. S.D. Xavier,
Under Secretary,
Ministry of Labour and Employment,
Sharam Shakti Bhavan,
Rafi Marg, New Delhi-110 001,
Email: sddotxavier@nic.in

Please object to this rule.

Regards,
Madhura

From India
Attached Files (Download Requires Membership)
File Type: pdf NOTICE_GO_4_ESI_LIMIT_15000.pdf (212.8 KB, 1564 views)

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I think this is not for implementation for raising objection, what opinion will Govt not implement after strong objections from employers. It shall be implemented whether raise objection or not.
From India, Delhi
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I totally agree that ESIC limilts should not rise bcz employees are not taking that much benefits from esic due to lack of unavailability of hospitals & docors or medicine.
From India, Karnal
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I agree with you that ESIC limits should not rise because employees are not getting many benefits from ESIC. Around 70% of employees in the private sector do not visit dispensaries or hospitals even once in their lifetime due to the unavailability of hospitals, doctors, or medicine.
From India, Delhi
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I also agree with this amendment, but there must be a ceiling, i.e., if the employee's gross salary is more than ₹10,000 to ₹15,000, the maximum amount must be considered as ₹10,000 only. This way, the employee's salary up to ₹15,000 will be covered under ESI, and this will not be a significant burden on the employee as well as the employer.

So now, as per the proposal, the total amount for ₹15,000 will be ₹263 + ₹712 = ₹975, and annually, if you calculate it, it will be ₹3,156 + ₹8,544 = ₹11,700. This is a substantial amount, and everybody knows that only a few people benefit from ESIC. So, I think this is the point to be raised now.

Waiting for your response.

Regards,
Ramnath

From India, Bangalore
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What is the use of bringing more employees under ESIC coverage? This move clearly indicates that the government needs more funds to support its own people. Instead of this, the government should concentrate on improving hospital facilities.

Thank you.

From India, Hyderabad
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Obviously, it's a different thought. I don't have any problem from ESIC because our employees have benefited a lot from it. I only don't agree with the revision or increase in amount because it becomes a burden to the poor employees and even small establishments. So, my suggestion is to try to make employees aware of the scheme and help them get the benefits. Please be positive, and you can even conduct a random survey at the shop floor level.

Regards,
Ramnath

From India, Bangalore
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Definitely, thanks, Madhura, for raising this issue. We all should send an email to Mr. Xaviour so that our collective efforts will make a difference. There is no use in spending our hard-earned money on things that are extremely useless to us.

In my case, I lose nearly 500k of my salary each month as both sides of ESIC are deducted from my salary. Can anyone tell me, are employees supposed to pay both sides of the contribution for PF as well as ESIC? I am confused.

Thanks

From India, Mumbai
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Hi, friends,

I totally agree that ESIC limits should not rise because employees are not taking that many benefits from ESIC due to the unavailability of hospitals, doctors, or medicine. I would like to request everyone to please oppose this law by sending your objections.

From India, Nasik
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To Riya,

As per the ESIC Act, the deduction should be from both sides, i.e., from the employee as well as the employer. The rate of deduction from the employee is 1.75%, and from the employer is 4.75%.

Hope this clears your confusion.

Thanks & Regards,
Nitendra Parab


From India, Mumbai
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Very bad news. I think our government only thinks about earning money. They should be involved in the service sector not just focused on making profits. Every person knows how to treat workers in the dispensary and how many formalities are required for treatment.

Ashok

From India, New Delhi
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Yes, we should fight on this. Most of the employees don't use ESIC services, so why should we pay ECI? Here, every employee whose salary is 15,000/- will have to suffer if our salary is going in vain like this. Let us fight against the government in this case.
From India, Eluru
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Dear Riya, plz refer chapter IV Sec 39 (1) of ESI Act 1948. so it depends upon your pakage whether it is Annual CTC or Gross Salary which is mentioned in ur appointed letter. regards, Ramnath
From India, Bangalore
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Thank you all for your support regarding these unnecessary changes by the government. We still have time to raise awareness among all HR professionals and voice our objections by sending an email to sddotxavier@nic.in. The deadline for sending emails is March 31, 2010. Let's act quickly, friends.
From India
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I feel the Government should review the facilities provided by the ESI Corporation before implementing the revision of the limit for coverage. The arbitrary decision of the Government should not lead to looting the employees and employers by collecting the subscription. The ESI is not providing for accidents happening outside the factory as in the past for injury arising out of employment. Hence, the employers or employees will have to make additional insurance for such accidents. This is an additional burden. Why not limit the subscription to the current level even when the coverage limit is enhanced?

P T George

From Singapore, Singapore
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I feel it is one more way for the government to extract funds from people. The utilization factor for ESIC usage is very low, added with plenty of corruption charges. The government should decentralize healthcare and ensure efficient implementation towards the population it covers.
From India, Bangalore
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RIYA, you need to go and kick the butt of your HR department that has implemented CTC; this mainly makes the employee pay for everything and allows the employer to only profit from their employees.

HR are humans too... I guess they just love to make others suffer.

From India, Mumbai
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Dear Friends, There is a provision in ESIC Act that in case the organisation is providing better healthcare and insurance of employees, the organisation may get exemption from ESIC. Regards
From India, Vadodara
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I do agree that the present ceiling on ESI coverage should not be raised. When it was raised earlier, many Unions went to courts. A workman or his family member falling ill is required to spend money to travel to ESI dispensary. He will be quite content in spending this money by consulting a medical officer living in his area. The insurance sector is opening up. Private insurance companies could be encouraged to provide better medical care through innovative schemes.
From India, Bangalore
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Hi,

I don't think that this amendment will be beneficial for employees. I have seen that a person whose salary becomes above $10,000 after an appraisal comes to us and says that he/she is happy because there will be no deduction of ESIC anymore after the cycle. Before raising this limit, the government should improve the facilities at dispensaries or hospitals as most people are not availing the benefits of it.

From India, Jaipur
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Government bureaucrats are foolish people. Most of them lack any knowledge of grassroots level industry and their employees. Government employees, like themselves, show no inclination to work. There are no doctors or attendants, and if there happen to be any, they display arrogance. There is no time kept for the government employees to arrive or leave, yet they enforce all rules strictly on private sector employees. At every turn, they demand money. While increasing the ceiling from 10K to 15K is acceptable, ESIC should fall under private sector management, eliminating the need for government employee involvement.

Ninety-five percent of government employees are like bandits, only thinking about themselves. A government stamp peon holds more power than a private sector director. It is requested that government employees change their attitude or have their power withdrawn.

Regards,

Ashwini Kumar

From India, Faridabad
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Hi,

Please understand this way of the government to raise its revenue to meet our son, daughter, father, who are working in government to pay high-rated salary and perks. On one side, our own people demand more salary and privilege, then where will the government go? They have to collect money from you and pay to you. Please remember, the government is the place where the poor can pay and the rich can spend.

From India, Madras
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I think 1st Govt should improve on facilities & then go for such move. In ESI hospital Doctors are giving same medicine for every sickness. As they dont have enough staff & medicines.
From India, Pune
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Hi friends,

Any proposal will have different opinions!

It is a facility the government is extending to employees. Some may benefit, some may not, or some may not prefer it. It is something like public transport. If you want, you can board and pay the nominal bus/train charge or hire an AC taxi or own car and travel short distances. For long distances, most of us have to depend on train services, except the creamy layer.

See ESIC also from this point of view. Then you will be able to appreciate the government's move. For example, an employee drawing a total monthly salary of 16,000/- in the private sector with a family of a wife, two kids, and their parents as dependents, will see this as a blessing. However, an individual who earns the same 16K at the beginning of their career will definitely oppose this. This is the practical problem.

At the end of the day, I am sure a small minority of employees earning 15K will oppose this idea. Let us forget this issue for the sake of those who cannot afford private sector medical facilities and support the government in their initiative to assist the needy.

Regards,

Nair

From India, Bangalore
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Hi Everybody,

I am totally against increasing the ESIC ceiling because 75% of employees in the private sector do not avail any ESIC facility, and they pay contributions regularly. Therefore, I think the ESIC ceiling should not be increased.

Regards,
Pulkit

From India, New Delhi
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I am totally agreeable with the government decision to enhance the limit from the existing 10,000 to 15,000/-. Because most of the employees who are in the cadre of executives are getting less salary than the workers in most of the companies. This ESI benefit will definitely help them, and for some employees, it will protect their jobs too. If we are utilizing the facilities, ESI is very good. They are providing good services.

So, I am welcoming the decision of the Government.

Regards,

Y R KOTESWARA RAO

From India, Guntur
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I do not agree with Mr. Ramnath and Mr. AKS, who seem to be satisfied with the benefits and services offered by ESIC.

Simple test to judge the quality, quantity, utility and reach of benefits and services offered by ESIC is answers to following questions:

• What is a percentage of employees actually availing benefits from ESIC out of total employees covered under ESIC from a particular factory or organization?

• In case one has to avail health facilities from ESIC, what is a time he/she has to spend at ESIC Office/ Dispensary?

• Are Doctor/s readily available to attend to patients visiting ESIC Dispensary / Hospital?

• How many patients first visit ESIC Dispensary / Hospital and then switchover to private doctors, once they have experience of ESIC?

• Why so many patients prefer costly private practitioner to free ESIC facility?

• Why majority of employees covered under ESIC never go to ESIC Doctors/ESIC Dispensaries/ ESIC Hospitals?

• Does Medicines and Treatments recommended by Doctors are actually available with ESIC?

• Will you personally make use of ESIC Health Facilities?

• What is number of ESIC Members and what is number of members availing ESIC Benefits?

• ESIC is supposed to be a Public Health Organization having many Doctors and Paramedics in their service, but ESIC is filled with only clerical staff. What is percentage of Doctors and Paramedic Staff working with ESIC?

• How many qualified and reputed Medical Practitioners / Doctors are working with ESIC or interested to work with ESIC?

• Most private hospitals are overflowing with patients in spite of hefty fees and charges. Why ESI Hospitals where services are free are generally empty and wear deserted look?

• ESIC is already collecting huge amount of contributions from employees and employers, What is percentage of amount spent on establishment, Administration and salaries of clerical staff vis-à-vis amount spent on Health/Medical Services?

• What is amount of contributions collected vis-à-vis value of medical / health benefits delivered by ESIC?

• Assume there are 100 employees all drawing Rs. 10000 as a salary. Their annual contribution to ESIC will be Rs. 93600. Just imagine and tell what would be the actual cost of Medical / Health Benefit delivered to these 100 employees in a year?

Given a choice of getting cover under Mediclaim instead of coverage of ESIC, what will be choice of mejority of ESIC members?

Just try to reply above questions and decide yourself.

Thanks & Regards

From India, Pune
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I fully agree, as we are unable to take advantage of the same. One of my colleagues is suffering from kidney failure, and medication is too expensive for her to afford. She has to visit the ESIC hospital at least two to three times a week for her medicines. Most of the time, the medicines are not available. Sometimes ESIC staff misplace the documents submitted by her. She always has to purchase the medicines from outside, which she cannot afford, but she has no choice. She even complained to me that the staff at the ESIC hospital are very rude and uncooperative. She has to spend at least half a day whenever she visits.

I feel they should not increase the slab. Even the employer has to pay nearly three times the amount paid by individuals. ESIC should first improve their services and then think of increasing the slab.

From India, Mumbai
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I agree with the views expressed that the present ceiling on ESIC should not be enhanced. ESIC should improve its services. We should encourage private insurers to come up with innovative schemes to provide the benefits envisaged under ESIC. Thanks.
From India, Bangalore
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[QUOTE=panchapakesan;1080647]
Quote:
I agree with the views expressed that the present ceiling on ESIC should not be enhanced. ESIC should improve upon its service. We should encourage private insurers to come up with innovative schemes to provide the benefits envisaged under ESIC. The employer and the employee could then be asked to take a policy from private insurers. Thanks.

From India, Bangalore
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Hi,

The rise in the bar from 10k to 15k is not a good idea. The Government wants to fill their pockets with OUR hard-earned money. Initially, it was 7.5k, then 10k, and now 15k. This is real bad news for the Employers as an annual medi-claim policy will be much cheaper than ESIC. The Government hospitals are pathetic, and anyone and everyone is treated like dirt there. I think a collective move needs to be taken against this rather than sending individual mails or letters.

We need to revolt against this and also fight for an Exemption Right if the employee doesn't want the ESIC deduction (like in PF).

From India, Mumbai
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Dear Friends, PFA the official notification that says that the rule is applicable from May 1, 2010. Thanks & Regards Karan Pohuja
From India, Mumbai
Attached Files (Download Requires Membership)
File Type: pdf ESIC Notification.pdf (1.92 MB, 143 views)

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Dear Madhura,

Thank you for raising this issue. I agree with Riya, but we need to improve our systems. The facilities provided in various hospitals and dispensaries should be adequate. What can be done? Even when the limit was Rs. 10,000, some of us were paying ESI contributions. What about them? Either there should be ESI with improved systems or no ESI for all employees. We should collectively send a mail to Mr. Xaviour.

Regards,
Snehal

From India, Pune
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Before enhancing the limit the govt must think that whether they can able to give the complete service to current persons already covered in the scheme
From India, Kala Amb
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Definitely, I do agree that ESIC is not that beneficial to the employees. Altogether, there is a loss for both the employer and the employee. If all HR personnel come together and approach the ESIC authority, then we will definitely be able to find a solution to this. I request you all to please come together. Seniors, please help me, is this right?
From India, Pune
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