Latest Developments in the ESI Scheme Revealed
Latest Developments in the ESI Scheme Revealed by Director-In-Charge S.Sivaramakrishnan, Director-in-Charge, ESIC SRO Mangaluru
Mangaluru: An interaction with media persons and citizens of Mangaluru with Director-In-Charge S Sivaramakrishnan, Director-in-Charge, ESIC SRO Mangaluru was organized by Kanara Chamber of Commerce (KCCI) and Industry on Thursday, 19 January at the KCCI hall, pertaining to the topic on “Latest Developments in the ESI Scheme”. President of KCCI-Jeevan Saldanha welcomed the gathering and briefed about the projects undertaken by KCCI during 2017.
Addressing the audience, S Sivaramakrishnan said, “The ESIC Sub-Regional Office (SRO), Mangaluru, was established in 2013, catering to the districts of Dakshina Kannada and Udupi. The ESI Scheme in the Mangaluru covers about 1.08 lakh employees and 2,400 employers, as on date. There are three branch offices under SRO, two in Mangalore and one in Udupi, for disbursal of cash benefits and for liaison with the employers and the employees. The medical benefit under the ESI Scheme in the SRO is being extended through one 100 bedded hospital in Mangaluru and nine dispensaries in various locations, all being administered by the ESIS Directorate, Department of Labour, Government of Karnataka.”
“Besides, providing medical treatment in respect of diseases/conditions for which facilities/infrastructure are not available, the ESIC has entered into a tie-up with reputed private hospitals for extending medical treatment to the employees and their family members, on a cashless basis. The Scheme for Promoting Registration of Employers and Employees (SPREE), is a one-time opportunity for all the establishments/factories having ten or more employees, but are not registered with ESIC and also for those establishments/factories which are already covered, but which have not registered all their employees,” added Sivaramakrishnan.
He further said, “The SPREE is special registration scheme of ESIC that aims to extend the social security net to all the employees. The establishments/factories which have not got registered under ESIC can avail the SPREE and register themselves under the SPREE, between 20th December 2016 and 31st March 2017 and avoid payment of contributions to ESIC for the back period and also avoid penalties, which are otherwise impossible under the ESI Act. Similarly, employers who have not registered all their employees, can register them between 20th December 2016 and 31st March 2017 and avoid penal action under the ESI Act”.
“Prior to 1st January 2017, only those of the employees whose average monthly wages do not exceed Rs 15,000/- were coverable under the ESI Scheme. However, this wage ceiling has been enhanced to Rs 21,000/- with effect from 1st January 2017 and hence, all the employees whose average monthly wages does not exceed Rs 21,000 are covered under the ESI Scheme. With effect from 1st May 2016, the entire district of Dakshina Kannada and Udupi has been brought under the ESI Scheme. Hence, all the factories/establishments in these two districts, where ten or more employees are employed, have to register with ESIC and start complying with the provisions of the ESI Act”.
“The entire process of registration under ESIC is to be performed online. The employers in the newly implemented areas are eligible for payment of contribution at a reduced rate of 4% of average monthly wages (3% from employer and 1% from employee), instead of the normal rate of 6.50% of the wages of their employees. The employers have to contact the SRO for verifying their eligibility for payment of contribution at the reduced rates. The employers may visit www.esic.in for registration and for remittance of contribution,” said Sivaramakrishnan.
There was a question session, where the audience posed a few queries pertaining to ESI issues, and Sivaramakrishnan clarified most of the doubts that citizens had. M Ganesh Bhat -treasurer of KCCI was also present on the dais. The vote of thanks was delivered by P B Abdul Hameed- Secretary of KCCI.
