ESIC Decisions: Contribution rates for employees, employers reduced; income limit for medical benefits raised

The ESI Corporation has taken several important decisions for improvement in its service delivery mechanism.The decisions were taken in the 177th meeting of ESIC under the chairmanship of Santosh Kumar Gangwar, Union Minister of State for Labour and Employment (I/C), the ministry said in a release Friday. Here's a look at the decisions taken in the meeting include - Reduction in rate of ESI Contribution; Proposal for increasing the income limit for dependency of the dependent parents of an Insured Person for availing Medical Benefit; ESIC to bear full cost of ESI Scheme in the prescribed ceiling of per IP expenditure; Setting up of 500 bedded ESIC Model Hospital at Sheelanagar, Visakhapatnam; Up-gradation of ESI Dispensary into 30 bedded ESI Hospital; Sub-Committee formed to decide the quantum of enhancements of PDB/DB rates; Starting of DOTT and DMRT Courses.

As per the release it was informed in the meeting that government has approved the reduction in the rate of contribution being paid by employers and employees from 4.75% to 4% and 1.75% to 1% respectively of the wages, and a draft notification intending to reduce the rate of contribution was issued by the government on 15.02.2019. The reduction in contribution will benefit all the employees and employers covered under ESI Scheme.

The Income limit for availing medical benefit for the dependent parents of an Insured Person (IP) covered under ESI Scheme has been increased from the existing Rs.5000 per month from all sources to Rs.9000 per month.

To improve the medical service delivery in the states, it has been decided that ESIC will also bear the 1/8th share of expenditure earlier used to be borne by states. Till now, ESIC used to bear 7/8th share of expenses of ESI Scheme. With this decision, ESIC will bear the full cost of ESI Scheme in the prescribed ceiling of per IP expenditure for a period of three years beginning from 2019-20. 

It has been decided that the ESIC will acquire an additional land of 10.56 acres abutting already allotted land of 8.58 acre at Sheelanagar, Visakhapatnam. On this land, 500 bedded ESIC Model Hospital with Super Specialties will be constructed.

Bridging the Gap

To bridge the gap in indoor health care facilities, in principle approval to Report of Sub-Committee on reconsideration of policy for up-gradation of ESI Dispensary into 30 bedded ESI Hospital has been given. Now, the 30 bedded ESI Hospitals will be established on 20000 IPs population in plain area and 15000 IPs population in hilly areas. Earlier, ESIC was setting up hospitals only in such areas where minimum IPs population is 50000. This decision will provide indoor facilities to IPs/beneficiaries in several under-served implemented areas under ESI Scheme.

It was also decided in the meeting that ESIC will start paramedical courses of Diploma in OT Technology (DOTT) and Diploma in Medical Records Technology (DMRT) at its Hospital & College complex, Gulbarga.  In line with Skill India Mission, these courses will help in bridging the gap in the availability of trained paramedical manpower.

The Employees' State Insurance Corporation is a pioneer Social Security organization providing comprehensive social security benefits like reasonable Medical Care and a range of Cash Benefits in times of need such as employment injury, sickness, death etc. 

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The ESI Act applies to premises/precincts where 10 or more persons are employed. The employees drawing wages up to Rs. 21,000 a month are entitled to health insurance cover and other benefits, under the ESI Act. The Act now applies to over 10 lakh 33 thousand factories and establishments across the country, benefiting about 3 crores 43 lakh family units of workers. As of now, the total beneficiary population of ESI Scheme stands over 13 crores 32 lakh. 

Ever since its inception in 1952, the ESI Corporation has, so far, set up 154 Hospitals, 1489 Dispensaries, 174 ISM Units, 815 Branch/Pay Offices and 63 Regional and Sub-Regional Offices.