Govt to widen ESI cover for employees

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This election year stores good news for the employees as Union Government has agreed to bring the staff drawing up to Rs 25,000 per month under the ESI cover against the earlier limit of Rs 15,000.

This schemes is likely to benefit over 8 crore people in the Government and private sectors"Government has agreed in principle to bring employees drawing Rs 25,000 as monthly salary under ESI bracket. The decision was taken in a high-level meeting held last week in New Delhi and order regarding this will be issued soon," a senior official in Department of labour, who attended that meeting, told The Pioneer here recently.Till now employees drawing wages up to Rs 15,000 a month are entitled to health insurance cover and other benefits under the ESI Act. The Scheme is being implemented at 807 centers in 29 states and union territories.  The Act applies to over 5.8 lakh factories and establishments across the country, benefiting 1.71 crore family units of workers. 

The official said that Government proposal was opposed by representatives of industries who said that this decision would add to their financial burden. "But the Government got support from the representatives of different state governments and representatives of Employees’ Union," he said.

 The ESI Scheme is mainly financed by contributions raised from employees covered under the scheme and their employers. The State Government bears one-eighth share of expenditure on Medical Benefit. The ESIC has set up 150 Hospitals and 32 Model Hospitals, 1,372 dispensaries, 91 ISM Units, 804 branch/ pay offices and 59 regional/sub-regional and divisional offices.

"The Employees’ State Insurance Scheme is a multidimensional Social Security Scheme mandated to provide both cash compensation and medical benefits against a single contribution in certain contingencies, and Employees’ State Insurance Corporation isthe nodal authority to ensure effective implementation of the scheme," the official said.

The meeting approved construction of ESI hospital in Firozabad provided state government provides land free of cost to the Government of India. The Uttar Pradesh Government has agreed to provide land, the official said.It was also decided to upgrade ESI inter college in Kanpur to Para-medical institution.

Daily Pioneer
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