Outcome of 177th ESIC Meeting of ESI Corporation

The ESI Corporation during its recently held 177th meeting under the Chairmanship of Shri Santosh Kumar Gangwar, Union Minister of State for Labour and Employment (I/C), has taken some important decisions towards improvements in its service delivery mechanism.

The decisions 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 and Starting of DOTT and DMRT Courses.

Some important decision taken by The ESI Corporation during 177th meeting :

  • Reduction in the rate of contribution:

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 has been issued by Government on 15.02.2019. 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:

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

  • Central ESIC will bear the full cost of ESI Scheme:

In order to improve the medical service delivery in the states, It was 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.

Source: PIB

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