The Employees State Insurance Company (ESIC) eased its norms and decided to pay 50 percent of the average wages of three months. The wages will be provided as unemployment benefits to cope with job losses between March 24 and December 31 of this year. During the period a huge number of people lost their jobs due to the COVID-19 pandemic.
This was the 182nd meeting of the committee and some other important decisions towards the improvement of the service delivery mechanism and providing relief workers affected by the COVID-19 pandemic were also taken. The meeting took place under the chairmanship of Labor Minister Santosh Kumar Gangwar.
What is ESIC?
The Employers State Insurance Company is a social security and health insurance scheme for the Indian workers. ESIC, the body, according to the rules and regulations mentioned in the ESI Act of 1948 manages the fund. It is a statutory body under the Ministry of Labor and Emplacement.
The news:
The board held a meeting on Thursday, 20th August 2020. During the meeting, the decision to relax on the norms of the average wages were taken. This initiative is expected to help more than forty lakhs, industrial workers.
A statement provided by the board says that they have approved relaxation criteria and enhancement in the payment of unemployment benefit under its Atal Bimit Vyakti Kalyan Yojana. Under the Atal Bimit Vyakti Kalyan Yojana, the unemployment benefit is paid to the workers covered under ESI scheme. The statement given by the board provides information on the fact that they have decided to extend the duration of the scheme for one more year. The extended duration will now end on June 30, 2021.
The existing conditions would be relaxed to benefit the workers who had lost their jobs during the coronavirus pandemic period. The relief amount would also be enhanced keeping in mind the benefits of the workers. It would be payable during the time period of March 24, 2020, to December 31, 2020. After the end of this period, the scheme would be up for grab with the original eligibility conditions from January 1st, 2021 to June 30th, 2021.
The board also added that the review of these relaxations would be done after December 31st. This would depend upon the need and demand for such relaxed conditions. The eligibility criteria to get the scheme has also been pulled down.
The board has commented that the enhancement of payment has been put up by 50 percent of average wages. Earlier this was 25 percent of the average wages. The amount is payable up to a maximum of 90 days of employment. The relief would be due for payment after 30 days instead of becoming payable 90 days after unemployment.
Instead of the claim being forwarded by the last employer, now the Insured Person can submit the claim himself, directly to the ESIC board’s branch office. The payment can also be made directly to the person’s bank account.
The statement provided by the board also says that the person must have insurable employment for two years before employment and should have contributed for not less than 78 days in the contribution period immediately preceding to unemployment and minimum 78 days in one of the remaining 3 contribution periods in two years prior to unemployment.
Some other decisions by the board also include the establishment of ICU/HDU (Intensive care unit) services at 10 percent of total beds in ESIC Hospitals. In view of the coronavirus pandemic, the decision of increasing the number of ICU/HDU has been taken. They have also decided to put up ICU/HDU services to 10 percent of the total commissioned beds in all ESIC hospitals.
3.49 crore family units of workers are covered by ESIC. They also provide cash benefits and medical care to its 13.56 crore beneficiaries.