EMPLOYEES STATE SCHEME (Syllabus: GS Paper 2 – Govt schemes)

News-CRUX-10     16th February 2024        

Context: Over 18.86 lakh new workers enrolled under Employees State Insurance, ESI Scheme in December last year.

Employees State Insurance

  • About: The Employees' State Insurance Scheme is a comprehensive initiative outlined in the Employees' State Insurance Act.
  • Inaugurated: In Kanpur on 24th February 1952 (ESIC Day) by then Prime Minister Pandit Jawahar Lal Nehru.
  • Objective:  To safeguard employees defined within the Employees' State Insurance Act, 1948, against various contingencies such as sickness, maternity, disablement, and employment-related death.
  • Financed by: Contributions from employers and employees.
  • Scope and Coverage: The scheme extends its coverage to a range of establishments, including factories, road transport, hotels, restaurants, cinemas, newspapers, shops, and educational/medical institutions.

oIt applies specifically to establishments where 10 or more individuals are employed, although in certain states, the threshold limit for coverage remains at 20.

  • Eligibility Criteria: Employees falling under the designated categories mentioned earlier, with wages up to Rs. 15,000/- per month, are eligible for social security coverage under the ESI Act.
  • Enhancement of Wage Ceiling: Notably, the ESI Corporation has made a significant decision to increase the wage ceiling for coverage under the ESI Act from Rs. 15,000/- to Rs. 21,000/-.
  • This enhancement aims to broaden the social security net and extend the benefits of the scheme to a larger segment of the workforce.