Firms told to enrol employees under ESI scheme
Source: Chronicle News Service
Imphal, September 13 2022:
The state's Labour Commissioner has notified to proprietors of firms/establishments that their registrations will be cancelled and punitive actions initiated, if the firms and establishments do not enrol all workers earning less than Rs 21,000 per month in the Employee State Insurance Scheme (ESIS).
In a letter addressed to the proprietors, the Deputy Labour Commissioner informed that the scheme is applicable to shops, hotels, restaurants, cinema halls, road motor transport, newspaper establishment, medical institution, educational institution (public, private and aided) and municipal corporations employing 10 or more people and within the jurisdiction of Imphal Municipal Corporation (IMC).
The scheme covers workers with monthly income not exceeding Rs 21,000 (Rs 25,000 for workers with disabilities) and provides benefits of a monthly contribution of 4 percent of monthly wages (3.25 per cent by employer and 0.75 percent by employee).
Among the many benefits of the scheme, the medical benefit provides free primary and secondary medical care and super specialty treatment with no limit on cost of treatment and medicines (at CHGS rates).
The Sickness benefit provides a payment of 70 percent of average daily wages up to 91 days in case of sickness of worker, while the maternity benefit provides a payment of 100 percent wages for 26 weeks in case of normal delivery for first two surviving children, thereafter for 12 weeks, miscarriage for 6 weeks and adoption for 12 weeks.
The disablement benefit provides payment of 90 percent of average daily wages on employment injury as long as disablement lies; dependent's benefit provides payment up to 90 percent of average daily wages to the dependents of insured persons who dies as a result of employment injury, and funeral expenses provides payment of Rs 15,000 for funeral of insured person.
For an employee earning Rs 10,000 per month, the monthly contribution by the employee is a mere Rs 75 per month.
The letter pointed out that in spite of being a mandatory scheme, many firms/establishments were not enrolling their workers under the scheme, thereby depriving them of the benefits provided under the scheme.
Thus, the commissioner urged the proprietors to register their firms/establishments in ESIC and enroll their workers falling within the eligible wage bracket on priority in the greater interest of the workers.
In this regard, an inspection of the firms/establishments will be conducted within 30 days to check for enrolment of workers under the scheme.
Non-enrolment of workers will attract penalty including cancellation of registration of the firms/establishments, the letter conveyed.