ESI under Code on Social Security: An Overview of Changes

ESI – Background  Employees’ State Insurance Scheme [‘ESI Scheme’] is a comprehensive social security scheme devised to protect employees and their dependents, covered under it, against contingencies, such as sickness, maternity, and death or disability due to employment injuries. The ESI Scheme is based on the principle of ‘pooling of risks and resources’, wherein that section of the population, which is exposed to risks of the same nature, comes together to mitigate the physical and…

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Implications of the ESIC Proposal to Increase the Wage Threshold

Introduction The Employees’ State Insurance Corporation (ESIC) is a statutory body responsible for administering India’s flagship social insurance program. It is established under the Employees’ State Insurance Act, 1948 which empowers it to make rules with respect to the scheme under Section-95 of the Act. Rule-50 of the Employees’ State Insurance (Central) Rules provides for the wage threshold for coverage of an employee under the Act, and consequently the scheme. It was previously amended in…

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Unemployment Benefits Under ESI: RGSKY and ABVKY

The unemployment rate in India hit record levels during the peak of the COVID-19 pandemic and had been increasing until the lockdown ended in mid-May. Labour participation rate has increased to around 40.66% according to data from the Center for Monitoring Indian Economy (CMIE), which is close to pre-COVID levels. However, several individuals are still being laid-off as part of restructuring operations, business continuity plans and other measures to cope with the economic consequences of…

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