Consider the following:

1. Hotels and restaurants
2. Motor transport undertakings
3. Newspaper establishments
4. Private medical institutions

The employees of which of the above can have the ‘Social Security’ coverage under the Employees’ State Insurance Scheme?

1. 1, 2 and 3 only
2. 4 only
3. 1, 3 and 4 only
4. 1, 2, 3 and 4

Explanation

All are correct

• The ESI scheme is a self-financed integrated measure of Social Insurance embodied in the Employee State Insurance Act. The scheme is administered by the Employee State Insurance Corporation (ESIC), an autonomous corporation under the Ministry of Labour and Employment (MoLE).
• Coverage: The ESI Scheme applies to factories and other establishment’s viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein 10 or more persons are employed.
  • However, the threshold limit for coverage of establishments is still 20 employees in some states.
• Eligibility:
  • The scheme covers all factory or establishment employees with a salary of up to Rs. 21,000 per month.
  • This limit is Rs. 25,000 per month for persons with disabilities.
  • Contributions: Employees contribute 0.75% of the wages, whereas employers contribute 3.25% of the wages payable to their employees.
  • The contributions are made monthly at a fixed percentage of wages.
  • Employees earning < Rs. 176/- a day are exempted from payment of their share of contribution.
  • The scheme is implemented on a district-wise basis.
  • Benefits to the employees include medical, sickness, disablement (temporary and permanent), maternity, funeral expenses, and other benefits as provided by the Act.

Answer: (d) 1, 2, 3 and 4; Difficulty Level: Medium