In a latest amendment to the ESIC Act, the Labour Ministry has made a provision for a lowered rate of contribution by employees and employers to the Employees' State Insurance Corporation (ESIC) scheme.  This is for new areas and increased the maternity benefit entitlement to its insured members in the case of confinement.

In the Employees' State Insurance (Central) Rules, 1950, rule 51B shall be omitted," a gazetted notification said. 51B provides for employers' contribution at the rate of 3 percent an employees’ contribution at 1 percent, of the wages of the employee, for the initial two years in areas where the Act has been implemented for the first time. However, consequent to the completion of twenty-four months from the date of implementation of the Act, the rate of contribution has to be restored to 4.75 percent by employer and 1.75 percent by the employee as per Section 51 of the Rule.

Further, in the maternity benefits for ESIC subscribers, the ministry has notified that In the Employees' State Insurance (Central) Rules, 1950, in the rule 56-A, for the words "rupees five thousand", the words "rupees seven thousand five hundred" shall be substituted." Under ESIC scheme, an insured woman and an insured person in respect of his wife is entitled for a medical bonus on account of confinement expenses, provided that the confinement occurs at a place where necessary medical facilities under ESIC scheme are not available. This bonus has been increased to Rs 7,500 from the earlier Rs 5,000 per case.

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