New ESI cap to be drag on employer
Updated: Oct 05, 2013 01:34:51pm
Jammu, Oct 5 (KNN) Increase in the salary cap by Rs 10, 000 for the people eligible for Employees' State Insurance (ESI) scheme will result in additional burden on the employers, according to the Bari Brahmana Industries Association (BBIA).
BBIA also fears increase of the salary cap for provident fund (PF) on the same pattern.
Recently, the government expanded the number of people eligible for ESI, by increasing the salary cap of beneficiaries to Rs 25,000 from Rs 15,000, despite opposition from employers, BBIA said here.
Employees' State Insurance is a self-financing social security and health insurance scheme for Indian workers.
After revision in the ceiling, all industrial workers who draw a salary of up to Rs 25,000 will be covered under medical and hospitalization facilities at more than 1,550 clinics and hospitals that the Employees’ State Insurance Corporation (ESIC) runs directly or has a tie-up with.
Every month, eligible employees contribute 1.75 per cent of their salary and employers contribute 4.75 per cent to the ESI corpus.
This single move shall lead to an additional burden for employers for every employee with Gross Salary of Rs 25000 and decrease the net pay of the employee.
The proposal has been accepted by the Labour Ministry in spite of strong objections raised by the employer’s representatives.
“If the notification is issued, the additional burden will be passed on to the Employer's and we fear that the Ceiling of the salary Cap for PF also may be increased on the same pattern,” said General Secretary of BBIA, Lalit Mahajan.
The previous increase in the salary ceiling for ESI was made in May 2010, when it was raised to Rs 15,000 from Rs 10,000.
Under the scheme, insured individuals are entitled to avail medical facilities like consultations, and hospitalization and they are even entitled to get medicines, ambulance services and immunization schemes among other family welfare services.
“In J & K State the ESI dispensaries are being managed by State Labour Department without any proper infrastructure and inadequate arrangements for the patient Care. In some of the Dispensaries the treatment is being given by the Pharmacists as the Doctors are not available resulting endangering the life of the insured persons,” said Mahajan.
“The matter has been taken up with the ESI authorities but no action has been taken so far with an excuse that the management of Dispensaries is under the State Labour Department. Any further burden on the present infrastructure may create problem for the insured persons,” Mahajan added.
The promulgation of Employees' State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. (KNN/SD)
BBIA also fears increase of the salary cap for provident fund (PF) on the same pattern.
Recently, the government expanded the number of people eligible for ESI, by increasing the salary cap of beneficiaries to Rs 25,000 from Rs 15,000, despite opposition from employers, BBIA said here.
Employees' State Insurance is a self-financing social security and health insurance scheme for Indian workers.
After revision in the ceiling, all industrial workers who draw a salary of up to Rs 25,000 will be covered under medical and hospitalization facilities at more than 1,550 clinics and hospitals that the Employees’ State Insurance Corporation (ESIC) runs directly or has a tie-up with.
Every month, eligible employees contribute 1.75 per cent of their salary and employers contribute 4.75 per cent to the ESI corpus.
This single move shall lead to an additional burden for employers for every employee with Gross Salary of Rs 25000 and decrease the net pay of the employee.
The proposal has been accepted by the Labour Ministry in spite of strong objections raised by the employer’s representatives.
“If the notification is issued, the additional burden will be passed on to the Employer's and we fear that the Ceiling of the salary Cap for PF also may be increased on the same pattern,” said General Secretary of BBIA, Lalit Mahajan.
The previous increase in the salary ceiling for ESI was made in May 2010, when it was raised to Rs 15,000 from Rs 10,000.
Under the scheme, insured individuals are entitled to avail medical facilities like consultations, and hospitalization and they are even entitled to get medicines, ambulance services and immunization schemes among other family welfare services.
“In J & K State the ESI dispensaries are being managed by State Labour Department without any proper infrastructure and inadequate arrangements for the patient Care. In some of the Dispensaries the treatment is being given by the Pharmacists as the Doctors are not available resulting endangering the life of the insured persons,” said Mahajan.
“The matter has been taken up with the ESI authorities but no action has been taken so far with an excuse that the management of Dispensaries is under the State Labour Department. Any further burden on the present infrastructure may create problem for the insured persons,” Mahajan added.
The promulgation of Employees' State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. (KNN/SD)
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