DIMAPUR, AUGUST 19 (MExN): Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour & Employment has entered its 60th year of existence. Marking the achievement of the milestone, the corporation is celebrating the Diamond Jubilee Year which begun February 24, 2011 and will continue till February, 2012.
“Employees’ State Insurance Scheme of India is a multidimensional social security system tailored to provide socio-economic protection to worker population and their dependants covered under the scheme. Besides full medical care for self and dependants, that is admissible from day one of insurable employment, the insured persons are also entitled to a variety of cash benefits in times of physical distress due to sickness, temporary or permanent disablement etc. resulting in loss of earning capacity, the confinement in respect of insured women, dependants of insured persons who die in industrial accidents or because of employment injury or occupational hazard are entitled to a monthly pension called the dependants benefit.” All regular employees earning less than Rs. 15,000 per month salary, the employers and employees contribute a fixed percentage of the salary (1.75% by the employees and 4.75% by the employers). This fund is managed by the ESI Corporation, which oversees the provision of medical and other benefits to the employees, through its large network of dispensaries and hospitals throughout India.
On account of the celebration, Dimapur branch also held a seminar cum awareness workshop on Friday, August 19 at the Circuit House, Walford. Joint Labour Commissioner, Er. Yanger Aier was the chief guest at the programme.
Addressing the gathering Aier said that the ESI scheme was implemented in Nagaland in 2008 as embodied in the ESI Act of 1948, which is considered as the first major legislation of Indiaon social security. The department of labour is the implementing agency in Nagaland; and at present only Dimapur is covered under the scheme.
While dwelling on the importance and benefits of the scheme, he however remarked that its implementation here so far has been unsatisfactory. The employers not forthcoming enough, he said is one of the chief reasons for its poor implementation. The scheme maybe attractive but the burden of ‘4.75 percent fixed payment’ the employers are entitled to contribute is also one of the reasons. To remedy the problem, the employees or agents of the ESIC should first reach out to the employees by creating awareness while properly indentifying the employing establishments. “Unless the employers come forward the ESIC cannot implement the scheme.” Further, the ESIC Dimapur branch must also look at the prospect of including the trade union under the purview of the scheme, Aier stated.
P. Baruah, Regional Director, ESIC, Guwahati also echoed a similar view. According to the data as of now, he said that so far only 130 working persons are insured under the scheme in Dimapur while 62 establishments or employers are registered with the ESIC. On top of that, most of the establishments are defaulting with the compulsory fixed percentage payment as entitled in the scheme for the employees. Comparatively, Tripura is faring better is this aspect, where the scheme was implemented only in 2009. There the total numbers of insured persons are 2864 while 162 employers have registered, he said.
Peculiar geographical location, inapproachability due to hilly terrains resulting in lack of industrial growth, lack of proper communication and transport facilities, lack of marketing opportunities due to less population and distance from mainland India, social and other stigma causing negativity towards labour by ethnic people, insurgency, social and political unrest, miniature sizes of most of the states are main challenges hampering the implementation of the scheme in the region. Lack of will power on the part of the employers, no or little trade union activism, and lack of initiative for effectively implementing labour laws by the government agencies in concern are the important factors impeding its effective implementation, he said. The ESI Act is applicable to all shops, factories, establishments, medical and educational institutions employing ten or more persons. The scheme is administered by the state governments in the states.
“Employees’ State Insurance Scheme of India is a multidimensional social security system tailored to provide socio-economic protection to worker population and their dependants covered under the scheme. Besides full medical care for self and dependants, that is admissible from day one of insurable employment, the insured persons are also entitled to a variety of cash benefits in times of physical distress due to sickness, temporary or permanent disablement etc. resulting in loss of earning capacity, the confinement in respect of insured women, dependants of insured persons who die in industrial accidents or because of employment injury or occupational hazard are entitled to a monthly pension called the dependants benefit.” All regular employees earning less than Rs. 15,000 per month salary, the employers and employees contribute a fixed percentage of the salary (1.75% by the employees and 4.75% by the employers). This fund is managed by the ESI Corporation, which oversees the provision of medical and other benefits to the employees, through its large network of dispensaries and hospitals throughout India.
On account of the celebration, Dimapur branch also held a seminar cum awareness workshop on Friday, August 19 at the Circuit House, Walford. Joint Labour Commissioner, Er. Yanger Aier was the chief guest at the programme.
Addressing the gathering Aier said that the ESI scheme was implemented in Nagaland in 2008 as embodied in the ESI Act of 1948, which is considered as the first major legislation of Indiaon social security. The department of labour is the implementing agency in Nagaland; and at present only Dimapur is covered under the scheme.
While dwelling on the importance and benefits of the scheme, he however remarked that its implementation here so far has been unsatisfactory. The employers not forthcoming enough, he said is one of the chief reasons for its poor implementation. The scheme maybe attractive but the burden of ‘4.75 percent fixed payment’ the employers are entitled to contribute is also one of the reasons. To remedy the problem, the employees or agents of the ESIC should first reach out to the employees by creating awareness while properly indentifying the employing establishments. “Unless the employers come forward the ESIC cannot implement the scheme.” Further, the ESIC Dimapur branch must also look at the prospect of including the trade union under the purview of the scheme, Aier stated.
P. Baruah, Regional Director, ESIC, Guwahati also echoed a similar view. According to the data as of now, he said that so far only 130 working persons are insured under the scheme in Dimapur while 62 establishments or employers are registered with the ESIC. On top of that, most of the establishments are defaulting with the compulsory fixed percentage payment as entitled in the scheme for the employees. Comparatively, Tripura is faring better is this aspect, where the scheme was implemented only in 2009. There the total numbers of insured persons are 2864 while 162 employers have registered, he said.
Peculiar geographical location, inapproachability due to hilly terrains resulting in lack of industrial growth, lack of proper communication and transport facilities, lack of marketing opportunities due to less population and distance from mainland India, social and other stigma causing negativity towards labour by ethnic people, insurgency, social and political unrest, miniature sizes of most of the states are main challenges hampering the implementation of the scheme in the region. Lack of will power on the part of the employers, no or little trade union activism, and lack of initiative for effectively implementing labour laws by the government agencies in concern are the important factors impeding its effective implementation, he said. The ESI Act is applicable to all shops, factories, establishments, medical and educational institutions employing ten or more persons. The scheme is administered by the state governments in the states.
