Lok Sabha Question No. 1567 (UNSTARRED), answered on 2018-03-05
Subject: Construction Workers under ESI Scheme
Ministry: LABOUR AND EMPLOYMENT
Asked by: RAJESH KUMAR DIWAKAR

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

UNSTARRED QUESTION NO. 1567 TO BE ANSWERED ON 05.03.2018

## CONSTRUCTION WORKERS UNDER ESI SCHEME

†1567. SHRI RAJESH KUMAR DIWAKER:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether  construction  companies  are  deducting  ESI  and  PF  from  the workers working in construction sector and if so, the details thereof;
- (b)whether the facility of ESI hospitals is available to the workers working in construction sector and if so, the details thereof along with the distance
- from the site at which such hospitals are located;
- (c)whether  the  Government  is  providing/proposes  to  provide  healthcare facility in the nearby private hospitals in lieu of deducting ESI contribution from the workers' salaries and if so, the details thereof;
- (d)whether any worker not working in any construction company regularly, after  a  gap  of  short  period,  starts  working  in  another  construction company, whether such worker would continue to get benefit of ESI and PF facilities; and
- (e)if so, the details thereof?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

(a): Yes, Madam.  It is informed that by virtue of Section 1(3) (a) of the  Employees' Provident Funds & Miscellaneous Provisions Act, 1952, the Act applies to an establishment employing 20 or more persons and engaged in Industry specified in Schedule-I. Building and Construction establishments have  been  included  in  the  Schedule-I  of  the  Act  vide  notification  of  the Government of India in the Ministry of Labour & Employment No. G.S.R. 1069 dated  the  11 th   October,  1980  which  came  into  force  on  the  31 st   October, 1980.

As per Section 6 contribution shall be paid by the employer to the provident  fund  in  respect  of  each  employee  of  covered  establishment.  The contribution shall be 12% of the basic wage DA and retaining allowance, if any.  The employees' contribution shall be equal to the contribution payable by employer in respect of him.

As regards ESI deduction, the construction companies situated in ESI Implemented areas and have registered themselves under the ESI Act are  deducting  ESI  Contribution  from  the  salary  of  their  workers  covered under the Act.      However, more than 20 companies from Andhra Pradesh, Bihar, Delhi, Gujarat, Goa, Madhya Pradesh, Tamilnadu and Telangana have disputed  the  coverage  and  have  moved  to  Court.  The  matter  is  sub-judice. The details of contribution received from the construction companies are as under:-

|   Sl. No. |   Total No. of Construction Companies registered as on 01.03.2018 | Contribution 2016-2017   | Contribution 2017-18(upto 12/2017)   |
|-----------|-------------------------------------------------------------------|--------------------------|--------------------------------------|
|         1 |                                                             27009 | 239.95 crores            | 263.17 crores                        |

(b): Workers working in construction sector which is covered under ESI scheme only are entitled to facility of availing medical benefits from ESI Hospital/dispensaries or through private tie-up Hospitals of ESI Scheme, as per norms.

(c): The medical benefits under ESI Act 1948 are available to Insured persons of ESI Scheme.

(d) & (e): Yes, Madam.  As per Para 26 (1) (a) every employee employed in or  in  connection  with  the  work  of  establishment  to  which  Employees' Provident Funds Scheme, 1952 applies other than excluded employee shall be entitled and required to become a member of the fund.

As regard retention of membership under EPF, as per para 26A of the Employees Provident Funds, 1952 a member of the fund shall continue to be a member until he withdraws under para 69 the amount standing to his credit in his provident fund account.   Accordingly, he would continue to get the benefits of EPF.

As  regards  ESIC  construction  worker  covered  under  ESI  Act  is allotted  an  IP  number  on  first  registration.  The  IP  number  is  retained  on change of employment and benefits are determined on the basis of number of days for which the contributions is received in respect of such employee. An employee who is eligible for sickness benefit will continue to get the benefit till the end of benefit period.

If  an  employee  in  respect  of  whom  contribution  is  received during April to September, will continue to be entitled for benefits till June 30th of the following year. Similarly, if contribution is received made during the contribution period October to March, the Insured Person will continue to be entitled for benefit till December of the year.

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