Date:16/06/2006 URL: http://www.thehindubusinessline.com/2006/06/16/stories/2006061604280100.htm

Back ESIC to increase wage ceiling for coverage

Ambarish Mukherjee

Decides to take over all hospitals jointly run by Centre, States

Under the Centre
Around 10-12 lakh workers may be benefited by the proposal.
Also, the number of persons who can avail themselves of the ESIC facilities would go up.

New Delhi , June 15

The board of the Employees State Insurance Corporation (ESIC) chaired by the Labour Minister, Mr K. Chandrasekhar Rao, on Thursday decided to increase the wage ceiling for coverage under the ESI Act from Rs 7,500 per month to Rs 10,000 per month. It also decided to takeover all ESI hospitals so far run jointly by States and the Centre, subject to the willingness of the State Governments.

According to rough estimates of senior labour leaders, the move to increase the salary ceiling could benefit around 10-12 lakh workers.

Briefing reporters on the takeover move, Mr Rao said the decision would be sent to the Government for approval. "The present healthcare delivery system is not satisfactory due to dual control in administration of the scheme," Mr Rao said. The total extra cost for taking over the hospitals from the states would cost ESIC to the tune of Rs 400-500 crore.

Both decisions would effectively mean that the total number of persons who can avail themselves of the ESIC health facilities would go up and the staff running ESIC hospitals would be the corporation's own employees. At present, doctors, nurses and staff manning ESIC hospitals in the States are State Government employees on deputation.

The INTUC President, Mr Sanjeeva Reddy, who is the member of the board told Business Line after the meeting that "eventually ESIC's total membership could go up from the present 75 lakh to about one crore". He added, however, the issue of taking over the ESIC hospitals from the States could be tricky.

`Political difficulties'

"There may be political difficulties because the hospitals are manned by State Government employees who get their respective State Government pay scale. Taking over would mean that the hospitals would be manned by ESIC's own staff. The state governments may not want to lose the authority over these hospitals where they can effectively appoint so many doctors and health workers," he said.

But, Mr Reddy also pointed out that this could open up opportunities for large-scale recruitment by the ESIC while the excess health workers available with the States may be deployed in the rural areas.

Welcoming the move, the AITUC President, Mr Gurudas Dasgupta, said the total number of beneficiaries could be much more if the decision was properly implemented.

"There are 75 lakh ESIC members whereas in the Employees Provident Fund Organisation, there are 3 crore members. So with proper implementation the number of new entrants could even go up to 50 lakh," he said.