Enrolments in ESIC Social Security Scheme increases to 821,000

On May 23, 2020, the payroll data of the Employees State Insurance Corporation (ESIC) was released. The data says that around 821,000 new members have joined ESIC social security scheme.

Highlights

The data was released by National Statistical Office (NSO). According to the data the subscribers to the scheme in 2018-19 were 14.9 million and it increased to 38.3 million in March 2020.

The NSO report issues data of several social security schemes such as PFRDA, EPFO. This is being done since 2018 covering the period 2017-18.

ESIC

The Employment State Insurance Scheme was launched in 1952 under the Employees State Insurance Act, 1948. The act was the first legislative social security step for workers in India.

The scheme was designed to help employees fight against their sickness, disablement, maternity and death due to employment.

Recent Developments in the Scheme

In June 2020, the Government of India reduced the rate of contribution under the scheme. The employer contribution was reduced from 4.75% to 3.25% and Employee contribution was reduced from 1.75% to 0.75%. Also, the employees that are earning Rs 137 or less per day are exempted from payment of their contribution.

Recently, to meet the salary bills of the workers during COVID-19 lock down period, the Government of India ruled to appropriate funds of ESIC

Month: Current Affairs - May, 2020