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MSMEs reach to Labour Minister urging to order ESIC to pay wages to workers

Updated: May 04, 2020 08:12:28am
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MSMEs reach to Labour Minister urging to order ESIC to pay wages to workers

New Delhi, May 4 (KNN) Micro Small and Medium Enterprises (MSMEs) facing difficulties in paying full wages to their workers as this lockdown due to COVID-19 pandemic has left them with an empty hand.

Fearing to be booked under relevant charges for not obeying the MHA's order to pay full wages to their employees, many of them, previously wrote to government to seeking Employees' State Insurance Corporation (ESIC) to pay the wages.

Badli Industrial Estate Association (BIEA) too has written to Labour Minister Santosh Kumar Gangwar, urging him to direct ESIC to pay wages to the insured workers.

In its letter, BIEA General Secretary, Ravi Sood argued that ESIC pays the insured persons for medical treatment in case of illness or injury, For payment of disablement benefits and family pension and lastly for payment of compensation for loss of wages during the period of treatment.

''Had this Lockdown not been declared, the insured persons would have been under a great risk of catching the Corona Virus disease and the entire expenses falling under all the above these heads would have to be borne by ESIC!'' he said.

''So, since all these expenses have been saved by the lockdown, in all fairness, the salary and wages of the insured persons for the lockdown period should be paid by ESIC,'' he added.

ESIC is currently sitting on cash reserves of about Rs. 8,000 Crores. So, when will these surplus funds be put to use, sir?, he asked.

Citing central and state government as an example who are cutting expenses and are finding it difficult to pay salaries to their employees, Sood again asked, ''With their factories under complete lockdown and with zero payments coming, where will the poor MSMEs pay the salaries and wages to their employees from?''

''In the end, we request you (Gangwar) that in view of the position explained above, kindly allow the payment of salary and wages of all the ESIC registered persons for the entire lockdown period through ESIC,'' he concluded.

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