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News In Brief Business and Economy

ESIC To Extend Social Security Schemes To Almost All Districts

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ESIC To Extend Social Security Schemes To Almost All Districts
20 Aug 2022
min read

News Synopsis

The Employees' State Insurance Corporation (ESIC) has been ordered by the government to expand its social security programs to all 744 districts nationwide by the end of this year. After the new social security laws go into effect, the expansion program will need to account for the larger recipient pool. 

Currently, the ESI plan is fully implemented in 443 districts, partially implemented in 153 districts, and not implemented at all in 148 districts. All factories and other businesses that employ ten or more people and make up to Rs 21,000 per month are subject to the ESI scheme. The employer and employee each contribute 3.25% and 0.75% of their salary, respectively, to the contributory plan. 

ESIC offers its members, known as insured individuals (IPs), and beneficiaries—members of their families—free medical treatment. As of March 31, 2021, there were 34 million ESIC IPs and 131 million beneficiaries, respectively. Bhupender Yadav, the labor minister, participated in a two-day brainstorming session of the ESIC and gave the organization the order to offer its beneficiaries cashless medical care services through hospitals that are affiliated with the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojna (ABPMJAY) in all of the nation's districts. Through this partnership, ESI plan beneficiaries in more than 150 districts can now get cashless medical treatment. 

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