Govt reduces ESIC contribution, and increases monetary grants to Rs. 7,500
Labour ministry has increased the monetary grants entitlement to its insured members in the case of confinement from Rs 5,000 to Rs 7,500 following an amendment to the ESIC Act.
The Employees’ State Insurance Corporation (ESIC) gives the monetary grants to a pregnant insured woman or an insured person for his wife under ESIC’s health insurance scheme.
Since 2012, the Monetary grant paid to pregnant women was Rs 5,000, and prior to 2012, it was Rs. 2,500 in case they go for delivery in dispensaries and hospitals not registered by the Employees’ State Insurance Corporation.
“In the Employees’ State Insurance (Central) Rules, 1950, rule 51B shall be omitted,” it said in a gazette notification. Rule 51 B of the ESIC Rules provides for employers’ contribution at the rate of 3% of the wages of the employee and employees’ contribution at 1% for the initial two years in areas where the Act is implemented for the first time.
However, consequent to the completion of twenty-four months from the date of implementation of the Act, the rate of contribution has to be restored to 4.75% by the employer and 1.75% by the employee as per Section 51 of the Rule.
