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ESI contribution rates lowering
Agenda on Higher Pension likely to be placed before CBT on 21.2.2019 for INFORMATION.PDF
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The 177th meeting of *ESI Corporation held on 19/02/2019* under the Chairmanship of Sri.Santosh Gangwarji, Hon'ble Union Minister of Labour and Employment has taken some landmark decisions for the overall improvement of the ESI Scheme and for the benefit of the Insured Persons and worker population of our country.

Some of the major decisions taken are...

1) *Increased the monthly income ceiling limit for dependant parents* to avail benefits under ESI Scheme raised from Rs.5000/- to Rs.9000/- ( almost doubled the limit)

2) Rationalized *ESI Contribution Rates* from 6.5% to 5%. Now the Employee share of contribution is reduced to 1% and Employer Share to 4% ( Total 5% of monthly Wages) This shall improve the compliance and reduce burden of ESI Contribution payment. The reduction on _Contribution Rates shall be reviewed after two years._


3) A major decision was taken for *removing the ESI expense ceiling on IPs to State Government.* Now only Rs.3000/- per IP was provided by ESI Corporation to State Governments for running the medical Scheme. It has now been decided to reimburse the State Governments the full expenses required for running the medical Scheme, without any ceiling. This shall bring huge increase the spending on the ESI Scheme by state government and corresponding improvement in medical facilities.

4) Four *New ESI Dispensaries* has been sanctioned for Kerala Maanamthavady, Sulthanbathery, Kannan Devan Hills and Mannamkandam (Idukki)


5) *Level 1 ICU shall be setup at all ESI Hospitals*

6) Decision was also taken to *improve the Super Speciality Treatmen* t and specialized medical services provided through ESI Scheme.

Besides several other important decisions were taken for improving the benefits and services provided to IPs under the ESI Scheme.

By team Labour Law Advisor
YouTube com/LabourLawAdvisor