Group Medical Insurance for GDS Employees
Group Medical Insurance for Gramin Dak Sevak Employees
Federation of National Postal Organisations (FNPO)
T-24, Atul Grove Road, New Delhi-110001 Phone: 011 -23321378
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Email: firstname.lastname@example.org Web: fnpo.org Mob: 9448061962, 94814 22464
Department of Posts,
Sub: – Group medical insurance for GDS Employees – reg.
Ref: – My Federation letter no: Medical lnsurance/GDS/2020 dated 17.1.2020
In the last meeting my federation submitted the benefits of Employees State Insurance Corporation (ESIC) for GDS Employees. In continuation of the above referred letter we submit the following for consideration and for implementation.
The ESI Act primarily applies to premises where 10 or more persons are employed and therefore applies to both organised and unorganised sectors. The ESI applicability is also to non-seasonal factories employing 10 or more persons and since 2011 it has been extended to shops, hotels, restaurants, private medical and educational institutions, cinemas and newspaper establishments employing 20 or more persons.
Employees whose monthly wages are Rs.21, 000 or below are covered under the ESI Act. The wage limit for coverage under the Act had been increased from Rs.15, 000 per month to Rs.21, 000 in December 2016. An employer is liable to pay its own contribution for every employee and deduct the employee’s contribution from wages bill and pay these contributions to the ESI within 15 days of the last day of the calendar month in which the contributions are due.
The ESI benefits include medical, cash, maternity, disability and dependent benefits to the Insured Persons under the ESI Act. The contributions made by the employee and the employer fund these ESI benefits. The scheme provides full medical care to the employee registered under the ESI Act, 1948 during the period of his incapacity, restoration of his health and working capacity. It provides financial assistance to compensate for the loss of wages during the period of his abstention from work due to sickness, maternity and employment injury and during the hospitalization in any ESI hospital. The scheme provides medical care to the employee family members also. Earlier in February 2019, the income limit for availing the medical benefit for the dependent parents of an Insured Person covered under ESI Scheme has been enhanced from the existing Rs.5, 000 per month from all sources to Rs.9, 000 per month.
ESI contribution rate:
- Under the Employees State Insurance Act 1948 (the ESI Act) the rate o( contribution has been reduced from 6.5 per cent to 4 per cent of the wages. The employers’ contribution is being reduced from 4.75 per cent to 3.25 per cent and employees’ contribution being reduced from 1.75 per cent to 0.75 per cent effective from 01.07.2019
- As per the Kamatesh Chandra Committee Report vide Annexure – 36 . the Chairman, GDS Pay Committee Sri Kamalesh Chandra has addressed letter to ESI Corporation And submitted in the GDS Committee Report “On our enquiries it is known that ESIC is ready to implement the ESI Scheme to all Gramm Dak Sevaks”
- ESI Corporation collecting 0. 75% from employees and 3% from employer under Section 46 of ESI Act ,1948 extending so many social security benefits i.e. medical, sickness, maternity, disablement, dependents benefits.
The then Hon’ble Minister of Labour & Employment Sri. Bandaru Dattatreyya has issued a Press Statement stating that there is a proposal under consideration for extending EPF & ESI facilities to Anganwadi workers. Asha workers. Construction workers. Auto Rickshaw workers and for some more employees.
As on date,1st scale ABPM / Dak Sevaks will get salary of Rs.10, 000 + DA 1, 700 + Increment 300 = 12, 000/- .his contribution per month is 90/- @1080/- per year
BPM 2st scale salary Rs.4, 500+ 2, 465+ 435 = 17, 400, his contribution per month 130/- @ 1566/- per year.
The above continuations are very less when compared to Oriental/ National Insurance Health Schemes as proposed by the Department of Posts.
By considering average DA for up to next Pay Commission 2026, it maybe Rs. 6,100/- and increments Rs.3, 200/- with a total of 9, 300 + 14, 500 = Rs. 23, 800/-.
The maximum ceiling was raised from Rs. 6, 500/- to Rs. 21, 000/- from 1997 to 2016. It is almost 323% for 19 years @ 17% per year. So, as per above data the ESI wage limit may be enhanced Rs. 32, 000/- as on 2026. There is no question of ineligibility of GDS in future in c/w ESIC scheme
As per ESI scheme. Once an employee starts earning a wage of more than Rs.21, 000, ESI contributions will be made only till the end of the contribution period It is a 6-month period.
For E g : Consider that an employees’ gross earning is Rs.20, 000 in the month of April. In the month of July, that person gets an increment which leads him out of ESI coverage i.e, salary increases to Rs. 25, 000
In this case, the employee will continue to contribute 1.75% for ESI on Rs.25, 000 from July to September. From the second half of the year i.e., October to March there will be no contribution towards ESI.
As per the section 46 of the Act, full medical care Is provided to an Insured person end his family members from the day he enters insurable employment Them is no celling on expenditure on the treatment of an Insured Person or his family member Whom an a limit of 2 lakhs is suggested in the proposed Oriental /National Health Insurance Schemes, we request Department of Posts to look into the ESI proposal for GDS employees