Tag Archives: Maternity Benefit

Maternity Benefits under SS Code : Piloting it the wrong way ! – Part 1

Maternity Benefit slide_page-0001 (2)

The year was 1983. The ESI Corporation wanted to make some path-breaking changes and to bringing in suitable amendments. The Contribution Card system with stamps had already been replaced with the Contribution Card system with cash. The issue now was that the classification of employees into three sets, viz., A, B and C, was to be given a go by. Common Contribution Period and Benefit Period was being contemplated. The Hqrs. Office of the ESI Corporation asked the Regional Directors to offer their opinion. The Regional Directors asked, in turn, the field officers the Managers of the Local Offices and the Insurance Inspectors to explain their stand. The outcome was the evolvement of law which ensured the introduction of new system providing for all the practical difficulties in its implementation.  The opinions offered ensured that the procedure evolved was not only not cumbersome but also one that advanced the purpose of the Act. Continue reading

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Filed under Benefits, Labour Code 2020

Enigmatic Amendment 2011 that affects the Benefits

There was, all of a sudden, an amendment, which came into force from 01.07.2011, stating that it was intended to simplify the term ‘average daily wages’ mentioned  in Rule 2 (1) (1-A) of the ESI (Central) Rules, 1950.  The definition in this sub-rule is meant for regulating the rates of various Benefits provided under the Act while the definition in in sub-rule 1-B is for deciding coverage.

The need for such simplification, after the vigorous efforts to computerize all works of the Branch Offices is not clear. But, the fact is that that amendment has reduced the rates of benefits which were available to the insured population up to 30.06.2011.

After 01.07.2011,

  1. the employees receiving wages at the lower level like Rs. 5000 or Rs. 8000 etc., p.m. get less amount when they seek two benefits, Sickness and Maternity;
  2. the employees in higher income group get less amount of benefit only for Maternity;
  3. but, all of them get more benefits for Disablement.

Natural justice demands that no amendment should result in reduction of benefits, unless such reduction is actually contemplated and discussed openly before making such amendment.

Can there be reduction of benefits through indirect amendments without making the public aware of it through categorical proclamations, beforehand?

How can the bar under Sec. 61 of the ESI Act be justified, hereafter?

Readers are welcome to share their enlightened opinions!

Please Click on the small Presentation on Amendment that affects Benefits

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Filed under Amendments 2010, Benefits, Powerpoints