{"id":2333,"date":"2019-06-21T08:57:18","date_gmt":"2019-06-21T08:57:18","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=2333"},"modified":"2019-06-21T08:57:19","modified_gmt":"2019-06-21T08:57:19","slug":"centre-reduced-rate-of-contribution-under-esi-act","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/centre-reduced-rate-of-contribution-under-esi-act\/","title":{"rendered":"Centre reduced rate of contribution under ESI Act"},"content":{"rendered":"\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCentre has reduced the employer\u2019s and employee\u2019s\ncontribution under the Employees\u2019\nState Insurance (ESI) Act<\/strong>. It will be effective from July 1<\/strong>. ESI Act\ngives insured workers medical benefits among other facilities. 

Aim:<\/strong>
\nThe move aimed at benefiting 36 million insured\npersons and 1.3 million organizations.
\nIt will also formalise the informal workforce in\nIndia. 
\nIt will expand the social security coverage and\nfacilitate further enrolment of workers under the ESI scheme.

Changes: <\/strong>
\nThe Ministry of Labour and Employment has\nreduced the total contribution towards ESI from 6.5% of an employee\u2019s wages to 4%<\/strong>.\nFor the employer\u2019s it reduced from 4.7%\nto 3.25%<\/strong> and the employee\u2019s contribution lowered to 0.75% of wages from 1.75%.<\/strong>
\nThe Ministry said there has been a substantial\nrise in the number of people being brought under the ESI scheme and the number\nof people who opted for it.
The\nanalysis said that:<\/strong>
\nIn 2015, the number of people who were insured\nunderthe scheme was 2.1 crore and it raised to 3.6 crore.
\nThe contribution amount in 2015 was Rs.11,455\ncrore which increased to Rs.22,279 crore.
\nThe number of people who opted for the ESI\nscheme increased to 12.85 lakh in 2018-19 from 7.83 lakh in 2015-16.

ESI\nAct:<\/strong>
Dr.B R\nAmbedkar<\/strong> was appointed by\nthe Government of India to create a report on the health insurance scheme for\nindustrial workers in March\n1943.<\/strong> The report became the basis for the Employment State\nInsurance (ESI) Act of 1948. ESI is a self-financing social security and health\ninsurance scheme <\/strong>for Indian workers.
Employees’\nState Insurance Corporation (ESIC) <\/strong>manages the fund as per the rules and regulations stipulated in the ESI Act 1948.<\/strong> ESIC\nfunctions under Ministry of Labour and Employment, Government of India.
\nESI corporation can raise loans and take\nmeasures for discharging such loans with the prior sanction of the central\ngovernment. 
\nESIC can acquire both movable and immovable\nproperty and all incomes from the property.
\nESIC can set up hospitals<\/strong> independently\nor in collaboration with state government or other private entities.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"

Centre has reduced the employer\u2019s and employee\u2019s contribution under the Employees\u2019 State Insurance (ESI) Act. It will be effective from July 1. ESI Act gives insured workers medical benefits among other facilities.  Aim: The move aimed at benefiting 36 million insured persons and 1.3 million organizations. It will also formalise the informal workforce in India.  It will […]<\/p>\n","protected":false},"author":13,"featured_media":2334,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[45],"tags":[],"class_list":["post-2333","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-articles"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/2333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=2333"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/2333\/revisions"}],"predecessor-version":[{"id":2335,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/2333\/revisions\/2335"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/2334"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=2333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=2333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=2333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}