Lok Sabha Question No. 2417 (UNSTARRED), answered on 2019-07-08
Subject: Employers/Employees under ESI Scheme
Ministry: LABOUR AND EMPLOYMENT
Asked by: Kuldeep Rai Sharma, Subhash Ramrao Bhamre, Heena Vijaykumar Gavit, Bidyut Baran Mahato, Supriya Sadanand Sule, Mohanbhai Kalyanji Kundariya, Amol Ramsing Kolhe

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

UNSTARRED QUESTION NO. 2417 TO BE ANSWERED ON 08.07.2019

## EMPLOYERS/EMPLOYEES UNDER ESI SCHEME

## 2417. SHRI KULDEEP RAI SHARMA:

DR. SUBHASH RAMRAO BHAMRE:

DR. HEENA GAVIT:

SHRI BIDYUT BARAN MAHATO:

SHRIMATI SUPRIYA SULE:

SHRI MOHANBHAI KALYANJI KUNDARIYA:

DR. AMOL RAMSING KOLHE:

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

- (a)whether there has been a substantial rise in the number of people being brought under the ESI Scheme and the number of employers who opted for
- it;
- (b)if so, the details thereof for the last three years and the current year;
- (c)whether  the  Government  proposes  to  reduce  employees  as  well  as employers contribution to Employee's State Insurance scheme;
- (d)if so, the details thereof and the reasons therefor along with the objective behind the move;
- (e)whether the representatives of Employee's unions have strongly opposed the said proposal;
- (f)if  so,  the  details  thereof  along  with  the  response  of  the  Government thereto; and
- (g)the other steps taken by the Government to bring more people under the ESI scheme?

## ANSWER

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

- (a): Yes sir. There has been a substantial rise in the number of employees as well as employers covered under the ESI Scheme.

(b):

| Year                  |   No. of employers (in lakhs) |   No. of Insured Persons (IPs) (in crores) |
|-----------------------|-------------------------------|--------------------------------------------|
| 2015-16               |                          7.84 |                                       2.14 |
| 2016-17               |                          8.98 |                                       3.2  |
| 2017-18               |                         10.34 |                                       3.43 |
| 2018-19 (Provisional) |                         12.85 |                                       3.6  |

- (c) to (f): Proposal for rationalisation of ESI contribution rates was placed before the ESI Corporation in its 173rd Meeting held on 16.02.2018 where it was  decided  to  constitute  a  Sub-Committee  consisting  of  Employers'  and Employees' representatives to examine the issue. The Committee recommended reduction in rate of ESI contribution to 5 per cent (Employers' contribution  @  4  per  cent  and  Employees'  contribution  @  1  per  cent).    The report of the Sub-Committee was placed before the Corporation in its 175th Meeting held on 18.09.2018. The Corporation also authorised the Chairman, ESIC  to  consider  various  suggestions  received  and  take  a  final  decision  in this regard.  Thereafter, keeping in view the overall financial position of the Corporation, the Chairman, ESIC Corporation /Minister, Labour and Employment decided to further reduce the rate of contribution to 4 per cent (Employers' contribution @ 3.25 per cent and Employees' contribution @ 0.75 per  cent)  and  accordingly  notification  has  been  issued  by  the  Government. The  reduced  rate  is  effective  from  01.07.2019.    The  reduction  in  rate  of contribution will reduce the burden on employees & employers; improve the coverage as well as compliance and also contribute towards 'Ease of doing Business'.
- (g): Under ESIC 2.O programme, ESI Scheme is to be extended to all districts of the country.  Periodical surveys are conducted for bringing more units  and  their  employees  under  the  coverage  of  ESI  Scheme.    As  on  date number of fully and partially implemented districts under ESI Scheme is 354 and 187 respectively.

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