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Released Date: 20th Mar, 2018

Central

Clarification Towards Status Of Re-Entrant Employees With Regard To Their Benefit Period, Maternity Benefit

As per ESIC circular dated 20th March 2018, The ESIC has clarified that the person who was already been an employee but has ceased to be an employee either due to his/her wages going above the coverage limit or due to any other reason, once re-enters as an employee for the second time, the benefits for the employee would henceforth be governed by the general contribution and benefit periods mentioned in Regulation 4 of the ESI (General) Regulations 1950, than the current system of the person not becoming an employee within the meaning of the Act for the first time and therefore making the employee to complete the stipulated nine months period again to start benefit period to become eligible for Benefits under the Act. ESIC also while examining the matter towards a previous notification dated 17th Dec 2008 on eligibility conditions for maternity benefit wherein it was mentioned that "the claim of re-entered Insured Woman may be settled in the same manner as that of Newly Insured Women", wherein she would have to complete a period of 9 months again to start her benefit period. Due to this many rightly payable maternity benefit claims were rejected. Hence the ESIC has now withdrawn the earlier notification and has clarified that re-entrant employees are to be governed by the general contribution and benefit periods, provided they have completed a period of 9 months once when they became an employee within the meaning of the Act for the first time. The current system to complete the stipulated nine months period again from the date of re-entrant to avail Maternity benefit under the Act stands withdrawn. Hereby it is also clarified that to work out the entitlement of maternity benefit, two consecutive Contribution period to be taken immediately prior to the actual or expected date of confinement. Taking both the Contribution period together. if the contribution was payable for not less than 70 days, the insured woman would be eligible. Even if she satisfies this contributory condition in one or the other of the said two contribution periods, she shall be entitled for maternity benefits

Effective Date: 20th Mar, 2018

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