E.S.Is. SCHEME
_The Scheme is an
important measure of Social Security and Health Insurance
in India. The Scheme is
operated, as per the provision of ESI Act passed in 1948. The Union Minister of
Labour is the Chairman and Union Minister for Health is
the Vice-Chairman.
The Administration of the ESI Scheme under the Act is entrusted to an autonomous body called the ESI Corporation. The Scheme is run by contributions of employees and employers and grants from State as well as Central Government. Under the Scheme, the worker contributes 1.75% of his wages and the employer contributes 4.75% of his wages, totaling 6.5% of the wages of the workers. This amount is collected by Regional Director, ESI Corporation and it is transferred to New Delhi Office of ESI Corporation.
The State Government provides Medical Services to the ESI Beneficiaries. A ceiling is fixed by the ESI Corporation towards sharable expenditure for medical care. In this ceiling, 7/8th share is funded by the ESI Corporation and 1/8th share is borne by the State Government. The ceiling is being enhanced from time to time by the ESI Corporation. As on today, the ceiling fixed towards medical care is Rs 900/- per I.P Family unit per annum. The Expenditure over and above this ceiling is to be borne by the State Government as per the Agreement entered into, by the State Government as well as ESI Corporation.
It is pertinent to note here that the ESI Corporation is incurring an amount of Rs 1800/- per IP.Family unit per annum whenever the corporation is providing medical care directly (without involving local Government) whereas Rs.900/- ceiling (towards medical expenditure) is fixed to all the other States where the medical care is provided by the State Governments.
All the State Governments are requesting to enhance this ceiling on Medical Expenditure, on par with ESI Corporation, since many years. The scheme provides certain cash benefits and Medical benefits to the eligible covered employees and their dependents.
The Administration of the ESI Scheme under the Act is entrusted to an autonomous body called the ESI Corporation. The Scheme is run by contributions of employees and employers and grants from State as well as Central Government. Under the Scheme, the worker contributes 1.75% of his wages and the employer contributes 4.75% of his wages, totaling 6.5% of the wages of the workers. This amount is collected by Regional Director, ESI Corporation and it is transferred to New Delhi Office of ESI Corporation.
The State Government provides Medical Services to the ESI Beneficiaries. A ceiling is fixed by the ESI Corporation towards sharable expenditure for medical care. In this ceiling, 7/8th share is funded by the ESI Corporation and 1/8th share is borne by the State Government. The ceiling is being enhanced from time to time by the ESI Corporation. As on today, the ceiling fixed towards medical care is Rs 900/- per I.P Family unit per annum. The Expenditure over and above this ceiling is to be borne by the State Government as per the Agreement entered into, by the State Government as well as ESI Corporation.
It is pertinent to note here that the ESI Corporation is incurring an amount of Rs 1800/- per IP.Family unit per annum whenever the corporation is providing medical care directly (without involving local Government) whereas Rs.900/- ceiling (towards medical expenditure) is fixed to all the other States where the medical care is provided by the State Governments.
All the State Governments are requesting to enhance this ceiling on Medical Expenditure, on par with ESI Corporation, since many years. The scheme provides certain cash benefits and Medical benefits to the eligible covered employees and their dependents.