The Parliamentary Standing Committee (PSC) on Labour, headed by veteran Biju Janata Dal (BJD) MP Bhartruhari Mahtab, has asked the Union government to strictly monitor the activities of the Employees State Insurance Corporation (ESIC), so that social security benefits reach more workers. In a report submitted in Parliament during the special session last week, the panel reviewed the ESIC’s applicability and benefits under the Employees State Insurance Scheme (ESIS), functioning of ESI Hospitals, management of the corpus fund, and recommended guidelines for organising special awareness campaigns about the scheme.
The panel said there is a need for reviewing the provisions relating to coverage, contribution, entitlement of the wages, and the wage limit for coverage under the ESIS. With the passage of time, the committee said, wages have increased and the last revision of the wage ceiling was effected from January 1, 2017. The prevailing wage limit of ₹176 per day for exemption from paying contribution was effected from September 6, 2019. The panel recommended the setting up of an expert committee for suggesting the changes required in the provisions so that the coverage and the number of insured persons could be increased.
The panel expressed concern that both the Labour Ministry and the ESIC are not fully geared up to provide extended coverage as envisaged under the Code on Social Security. “The Committee are of the considered view that preparatory work for implementation of the plan of action already identified by ESIC viz. conduct of extensive surveys; collection of data from Government Departments; identification of common business identifiers for establishments by the ESIC in consultation with EPFO; use of Aadhaar for identification of members/insured persons, etc. need to be undertaken in right earnest,” the report said.
Considering the shortage of manpower and lack of proper infrastructure in the ESIC, the panel asked the Centre to fill up the vacancies in hospitals and dispensaries. “If required, the Recruitment Rules be amended and restructuring, wherever considered necessary, be done so as to have requisite manpower in position and thereby enable in meeting the stipulations of the Code on Social Security,” the report added.
The ESIC had accorded approval for initial investment starting at 5%, and gradual increase up to 15% in Exchange Traded Funds (ETF). The panel noted that the expansion of the ESIC requires a substantial amount of funds. “The Committee expect that whatever roadmaps the Corporation has been working on is for the optimum benefit for the most deserving workers of the organised and unorganised sectors whose requirements should be given utmost importance by the Ministry. The Committee are of the opinion that before making changes in the percentage of the amount of the investment, the Corporation should make diligent efforts to address these issues so as to meet the requirements of the Insured Persons,” the report said.
