Coimbatore: Deputy Director (Incharge) of ESIC Sub Regional Office, said that the contribution rates paid by workers and entrepreneurs have been reduced from 6.5% to 4% in the ESI program.
Coimbatore: Deputy Director (Incharge) of ESIC Sub Regional Office, said that the contribution rates paid by workers and entrepreneurs have been reduced from 6.5% to 4% in the ESI program.
The ESI program was launched on February 14, 1952, and has completed 67 years of its dedicated service in providing social security to the national workforce.
In a recent announcement, the contribution rate paid by workers and entrepreneurs has been reduced from 6.5 % to 4 % (worker share 0.75 %, and the entrepreneur share is 3.25%).
This is effective from the payment received from July 2019.
Raguraman, the Deputy Director (Incharge) of ESIC Sub Regional Office, in his press communique, said that "the reduction in contribution guarantees financial relief for workers and entrepreneurs. At the same time, the benefits paid to workers have not been reduced. The reduced contribution rate will increase worker's net pay, thereby leading to more employees in the corporate sector under ESI scheme."
"Similarly reduction in the contribution rate of entrepreneurs can lead to improving the financial health of the companies" he added.
As stated in the gazette of Government of India, the ESI project will be implemented in Tirupur district of Tamil Nadu on September 1, 2019, also, to the already implemented areas.
Workers who receive a maximum salary of Rs 21,000/- and the differently-abled workers who receive Rs 25,000 in areas could apply to ESI program in Coimbatore, Nilgiris, Erode and Tirupur. They can register and contribute to the ESI program from September 1, 2019.
The ESI scheme provides medical benefits, cash benefits, maternity assistance, disability assistance and dependents assistance to insured persons under the ESI scheme 1948 and medical seat provision for children of insured persons for MBBS and BDS.
Besides, Dr Ravi Kumar, Principal of Coimbatore Government Medical College and ESI Hospital, said, "We are planning to launch a" full physical examination service for the benefit of insured employees and their family members in advance.
"The ESI is improving the quality of medical care and other services provided under the scheme with a concern for the welfare of workers and entrepreneurs," ended K.Raguraman, Deputy Director (Incharge).