ESIC: Amendment To Confinement Expenses To Rs. 7500


Labour ministry has done away with the provision of lowered rate of contribution by employees and employers to the Employees’ State Insurance Corporation scheme for new areas while increasing the maternity benefit entitlement to its insured members in the case of confinement from Rs 5000 to Rs 7,500 following an amendment to the Act.

“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 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 employer and 1.75% by the employee as per Section 51 of the Rule.

This provision has been done away with through an amendment to the, thus increasing the liability on employees and employers which gets covered under the Act in new areas.

Separately, the government has also notified enhanced reimbursement under the maternity benefits for ESIC subscribers. “In the Employees’ State Insurance (Central) Rules, 1950, in the rule 56-A, for the words “rupees five thousand”, the words “rupees seven thousand five hundred” shall be substituted,” labour ministry said in another notification.

As per the ESIC Rules, an insured woman and an insured person in respect of his wife is eligible for a sum of Rs 5000 per case as medical bonus on account of confinement expenses, provided that the confinement occurs at a place where necessary medical facilities under the Employees’ State Insurance Scheme are not available. Further, the confinement expenses shall be paid for two confinements only. This has now been revised to Rs 7,500 per case.

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