The Ministry of Labour and Employment (“Ministry”) has, in Gazette Notifications [G.S.R. 675(E) and G.S.R. 676 (E)] dated 27th October, 2020, has issued the Employees’ State Insurance (Central) Amendment Rules, 2020 (“Amendment Rules”) for further amending the Employees’ State Insurance (Central) Rules, 1950 (“Principal Rules”).
The amendments are effective 27.10.2020.
| Principal Rules | Amendment Rules | Implications |
| Rule 56-A.
Confinement expenses to an insured woman and an insured person in respect of his wife shall be paid a sum of rupees five thousand per case as medical bonus on account of confinement expenses:
Provided that the confinement occurs at a place where necessary medical facilities under the Employees’ State Insurance Scheme are not available:
Provided further that confinement expenses shall be paid for two confinements only. |
Rule 56-A.
Confinement expenses to an insured woman and an insured person in respect of his wife shall be paid a sum of rupees seven thousand five hundred per case as medical bonus on account of confinement expenses:
Provided that the confinement occurs at a place where necessary medical facilities under the Employees’ State Insurance Scheme are not available:
Provided further that confinement expenses shall be paid for two confinements only. |
The Amendment Rules have increased the maternity benefit payable in respect of confinement occurring or expected to occur / confinement expenses payable to insured women employees from Rs. 5000 to Rs. 7500. |
| Rule 51B
In areas where the Act is implemented for the first time, the rates of employer’s and employee’s contribution for the initial twenty-four months from such date of implementation, shall be as under:-
(a) Employer’s contribution. – A sum (rounded to the next higher rupee) equal to three per cent of the wages payable to an employee: and (b) Employee’s contribution. – A sum (rounded to next higher rupee) equal to one per cent of the wages payable to an employee:
Provided that on completion of twenty-four months from the date of implementation of the Act, the rate of contribution as provided under rule 51 shall be applicable. |
Rule 51B has been omitted | Under the Principal Rules, upon the new implementation of the Rules in any area, for the first twenty-four months, employers and employees are allowed to make contributions at lower rates of 3% and 1% of the wages payable to an employees respectively.
The Amendment Rules does away with this requirement. |
Source: Ministry of Labour and Employment
