Employees’ State Insurance Corporation (ESIC) 14/06/2019 – Posted in: Daily News – Tags: ESIC benefits
EMPLOYEES’ STATE INSURANCE CORPORATION
For: Preliminary
The topic covers: ESIC – benefits and significances, changes in percentage
News Flash
The central government has decided that from the beginning of July, both employer’s and employee’s contribution under the Employees’ State Insurance (ESI) Act would be reduced. The act insured workers medical benefits among other facilities.
The total contribution towards ESI was reduced from 6.5% of an employee’s wages to 4%, with the employer’s share cut to 3.25%, from 4.75%, and the employee’s contribution lowered to 0.75% of wages, from 1.75%.
The current rates had been in place since January 1, 1997.
ESIC
Significance
- As per the Labour and Employment Ministry, this would benefit 3.6 crore employees and 12.85 lakh, employers.
- The reduced rate of contribution will bring about a substantial relief to workers under the ESI scheme and bring more and more workforce into the formal sector.
- The financial liability of employers would also be reduced.
- Increased ease of doing business.
Employees’ State Insurance Corporation (ESIC)
The promulgation of Employees’ State Insurance Act, 1948 (ESI Act), by the Parliament was the first major legislation on social Security for workers in independent India.
The ESI Act 1948, encompasses certain health-related eventualities that the workers are generally exposed to; such as sickness, maternity, temporary or permanent disablement, Occupational disease or death due to employment injury, resulting in loss of wages or earning capacity-total or partial.
This fund is managed by the Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948. ESIC is an autonomous corporation by a statutory creation under the Ministry of Labour and Employment, Government of India
The scheme was inaugurated in Kanpur on 24th February 1952 (ESIC Day) by then Prime Minister Pandit Jawahar Lal Nehru.
Benefits of ESIC
- Un-employment allowance
ESIC Provides a monthly cash allowance for a duration of a maximum of 24 months in case of involuntary loss of employment or permanent invalidity due to non-employment injury.
- Dependants’ benefit
ESIC provides monthly payment apportioned among dependants in case of death due to employment injury.
- Disablement benefit
ESIC provides continuous monthly payment till injury lasts for temporary disablement and for whole life for permanent disablement.
- Maternity benefit
ESIC provides 100% of average daily wages in cash up to 26 weeks in confinement and 6 weeks in case of miscarriage, during maternity leave and 12 weeks for commissioning mother and adopting mother.
- Sickness benefit
ESIC provides 70% of average daily wages in cash during medical leave, up to 91 days in two consecutive benefit periods.
- Medical benefits
ESIC provides reasonable Medical Care for self and family from day one of entering into insurable employment.
Source: The Hindu
You can follow us on LinkedIn and for more updates related to UPSC IAS Preparation, Like our Facebook Page and subscribe our Diligent IAS Youtube Channel