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With the lockdown now extended till May 3, the Labour Ministry on Friday said the last date for depositing contribution in Employees’ State Insurance (ESI) scheme for the months of February and March will now be May 15.
Nearly 3.5 crore employees in 12 lakh companies are likely to benefit from this extension.
The Employees’ State Insurance Act 1948 (the ESI Act) provides for medical, cash, maternity, disability and dependent benefits to the insured persons under the Act. The ESI Act is administered by Employees’ State Insurance Corporation (ESIC). The benefits provided under the ESI Act are funded by the contributions made by the employers and the employees. The rate of contribution is 4 per cent, out of which 3.25 per cent is contributed by the employer and remaining by employees.
According to the Ministry, the period for filing ESI contribution for February and March was earlier extended to April 15 and May 15, respectively. Now, considering the hardship being faced by employers, the period for filing ESI contribution has been further extended to May 15. The period for filing contribution for the month of March 2020 is also May 15. “No penalty or interest or damage will be levied on establishments during the extended period,” the Ministry said.
The Ministry also announced other relief measures. In order to ease hardship of ESI beneficiaries, ESIC will reimburse their purchase of medicines from private chemists during the lockdown period.
A provision has also been made for providing medical services to IPs and beneficiaries from tie-up hospitals, if an ESIC Hospital is declared as a dedicated Covid-19 hospital to cater exclusively to Covid-19 suspected/confirmed cases.
Medical Benefit is provided under Rule 60-61 to the insured persons who cease to be in insurable employment on account of permanent disablement and to the retired insured persons, on payment of advance lump-sum contribution for a year at the rate of ₹10/- per month.
Under the prevailing circumstances of lockdown, there may be cases where validity of the medical benefit cards issued to these beneficiaries expire as these beneficiaries are unable to deposit the advance annual lump-sum contribution due to the lockdown.
Such beneficiaries have been allowed to avail themselves of the medical benefit till June 30.
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