ESIC will cover casual contract employees of municipal organizations

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“The ESI company has been tasked with dealing with the matter with the States / UTs, being the appropriate government (s) under the ESI Act, for notification of casual and contract worker coverage in the municipal / council company (s) ( s) in their respective jurisdictions, ”said an official statement quoting Labor Minister Santosh Kumar Gangwar.

The Center has decided to subject all casual and contract workers working in municipal bodies to social security schemes administered by the National Employees Insurance Company (ESIC).

“The ESI company has been tasked with dealing with the matter with the States / UTs, being the appropriate government (s) under the ESI Act, for notification of casual and contract worker coverage in the municipal / council company (s) ( s) in their respective jurisdictions, ”said an official statement quoting Labor Minister Santosh Kumar Gangwar.

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The statement said that for the National Capital Region of Delhi, with central government being the appropriate government under the ESI Act, the Ministry of Labor has already issued such a notification of “intent” on June 7.

Gangwar said that ESI coverage of casual and contract workers working with municipal agencies would go a long way in providing social security coverage to a very vulnerable segment of the workforce. This will contribute to the social upliftment of this segment of the workforce and their families.

Once notifications on this matter are issued by states, casual and contract workers working with municipal bodies will be able to benefit from the full range of benefits available under the ESI Act, such as sickness benefits, health benefits. maternity, disability benefits, dependents’ benefits, funeral expenses, etc. These workers will be able to benefit from medical services in ESI’s 160 hospitals and more than 1,500 dispensaries across the country.

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The ESI regime is currently applicable to non-seasonal manufacturing establishments employing 10 or more workers. For healthcare facilities and medical facilities, the cut-off is 20 or more workers. In the contributory scheme, an employer must pay 3.25% of the monthly salary paid to an employee while the employee must pay 0.75% of the salary.

Under the Social Security Code, passed in parliament last year, the government proposed to group concert and platform workers under ESI. Membership of ESIC was also open to establishments with fewer than 10 employees covered by the social security code.

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