ESIC’s unemployment exemption extended till June next year

The benefit period ended on 30 June and the new extension of the deadline would be valid retrospectively from 1 July 2021 to 30 June 2022.

Union Labor and Employment Minister Bhupendra Yadav said that under the provision, 50% unemployment allowance of three months salary will be provided to those ESIC customers who lose their jobs due to any reason. The decision was taken at a board meeting of ESIC, one of the two largest social security bodies under the labor ministry.

“This will be beneficial for ESIC customers who lose jobs. But there is a firm belief that the number of workers to be laid off during the COVID-19 period is not being reported transparently and ESIC needs to step in here,” said Amarjeet Kaur, a board member of ESIC.

The insured can submit the claim directly to the ESIC branch office instead of the claim being forwarded by the final employer with the payment made directly to the customer’s bank account. Since the outbreak of COVID-19, more than 50,000 people have benefitted from this scheme so far.

The Board also expressed its readiness to cover around 6 million gig and platform employees under ESIC benefits ranging from OPD service to tertiary care health benefits.

“The Labor Secretary informed the Board members that ESIC is ready to accommodate around 5 to 6 million gig platform workers once the Labor Code on Social Security comes into force. And the board members asked the ministry and the corporation to expand ESIC coverage across India and look into informal workers as well,” said Kaur.

Industrial employers currently contribute 3.25% of their basic salary every month, while employees contribute 0.75% towards ESIC statutory deduction.

ESIC customers and their families get health benefits from primary to tertiary care in ESIC hospitals and dispensaries across India, and also provides unemployment benefits to customers. Receives about ESIC ₹16,745 crore annually from this statutory deduction.

However, the ESIC board did not decide anything specific on the demand for increasing the salary ceiling limit. ₹to 25,000 per month ₹21,000 currently.