Important Decisions taken in 177th ESI meeting held on 19/02/2019 By Global HR Associates


The 177th meeting of ESI Corporation held on 19/02/2019 under the chairmanship of Shri. Santosh Gangwar, Hon’ble Union Minister of Labour and Employment has taken some landmark decisions for the overall improvement of the ESI Scheme and for the benefit of the IPs and Employer of our country.

Following are the major decisions/ announcements in the meeting:-

1. Increased the monthly income ceiling limit from Rs.5000/- to Rs.9000/-for dependent parents to avail benefits under the ESI Scheme raised.

2. Rationalized ESI Contribution Rates from 6.5% to 5%. Now, the new Employee share of contribution is 1% and Employer Share is 4% ( Total 5% of monthly Gross Wages) This shall improve the compliance and reduce the burden of ESI Contribution payment.

 3. Eligibility for Super Speciality Treatment Reduction to 6 months from the current 2 years.

4. A major decision was taken for removing the ESI expense ceiling on IPs to State Government. Currently, 87.5% contribution is provided by the center and 12.5% by state running the medical Scheme. It has now been decided to reimburse the State Governments the full expenses required for running the medical Scheme, without any ceiling. This shall bring huge increase the spending on the ESI Scheme by the state government and corresponding improvement in medical facilities. If this still does not bring any improvement then running hospitals should be taken over by central ESIC board

4) Four New ESI Dispensaries has been sanctioned for Kerala Maanamthavady, Sulthanbathery, Kannan Devan Hills and Mannamkandam (Idukki)

5) Level 1 ICU shall be set up at all ESI Hospitals.

6) The decision was also taken to improve the Super Speciality Treatment and specialized medical services provided through the ESI Scheme.

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