Ministry of Labour & Employment
ESI
Corporation took important decision towards improvement in its
service delivery mechanism
22 FEB 2019
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.
In the meeting, it was informed 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 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 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.
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.
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.
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
was accorded. 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.
ESIC has been periodically enhancing the basic rates of the PDB
and DB payments to counter the effect of inflation. To
compensate for inflation, a Sub-Committee of ESIC has been
formed to decide on the methodology and quantum of enhancement
of the PDB/DB rates.
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.
Besides above, around 40 other agenda items pertaining to
improvement in services/benefits to Insured Persons and their
beneficiaries and other administrative matters were deliberated
upon and approved during the meeting.
The other dignitaries present in the meeting include Shri Heera
Lal Samaria, Secretary, Labour and Employment, Shri Raj Kumar,
Director General, ESIC, Smt. Anuradha Prasad, Addl. Secretary,
Labour and Employment, Smt. Sibani Swain, Addl. Secretary &
FA, Labour and Employment and Ms. Sandhya Shukla, IA&AS,
Financial Commissioner, ESIC, Representatives of Employees and
Employers, ESI Corporation Members, representatives of State
Governments and ESIC.
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. 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.
PIB