Parliamentary panel urges govt to revise wage ceiling under ESI scheme

Panel wants faster action on wage ceiling revision, Aadhaar seeding, and improved incentives for doctors to ensure broader coverage ahead of Social Security Code rollout

In a bid to increase coverage of the Employee State Insurance (ESI) scheme, the parliamentary standing committee on labour has sought an upward revision of the wage ceiling and the exemption limit from the labour ministry.

 

“The committee stresses the urgency for an upward revision of the wage ceiling and exemption limit under the ESI Scheme. It urges the ministry to examine the report in the least possible time so that the wage ceiling and exemption limit are enhanced accordingly with a view to substantially increase coverage and provide benefits to the maximum number of insured persons (IPs) and beneficiaries,” the report noted.

   

Presently, the employees of factories and establishments employing 10 or more persons and notified under the Employee State Insurance Corporation (ESIC) Act, drawing wages up to ₹21,000 per month (₹25,000 for persons with disabilities), are covered under the scheme. This wage ceiling was made effective in 2017. 

 

Under the scheme, employees' and employers' contribute 0.75 per cent and 3.25 per cent of their wages. The proceeds are utilised to provide medical care and various cash benefits to the IPs.

 

Meanwhile, employees with daily wages up to ₹176 per day are exempted from payment of their contribution. This limit was made effective in September 2019. 

 

Earlier, the labour ministry informed the House panel that a committee comprising officials and members of the ESI Corporation had been constituted for examination of the issue and to make suitable recommendations. 

 

“The report of the committee has been received recently and the issue is under examination,” it had submitted. 

 

However, there is no specific decision taken by the ministry/ESIC on this report, the committee noted.  

 

Besides, the committee also expressed ‘deep’ concern as only a third (12.6 million) of the total insured persons had their Aadhaar seeded by September last year. 

 

“Since the provision of formulating a special scheme for unorganised/gig and platform workers have been included in the new labour codes, the seeding process has to be expedited on a war footing, thus paving the way for guaranteed success in preparing the groundwork before the Social Security Code actually comes into effect.” the report noted. 

 

Moreover, the committee also emphasised the need to enrol doctors in areas where ESIC does not have them for providing medical care to the IPs. It urged the ministry/ESIC to implement the enhanced remuneration for Insurance Medical Practitioners (IMPs) as the capitation fee being paid to the IMPs at ₹41 per IP per month is meagre and needs to be revised. 

 

The ESIC has enrolled 1,003 private medical practitioners IMPs in a bid to supplement the ESI dispensary network. Each IMP is allowed to register up to 2,000 IP family units for providing medical care to the ESI beneficiaries, which include consultation, basic lab investigation and cost of medicine.