This document summarizes Lok Sabha Unstarred Question No. 1360, addressed to the Minister of Labour and Employment on July 28, 2025, regarding the extension of Employees' State Insurance (ESI) benefits. The question inquired about the potential extension of ESI benefits to workers in the unorganized sector, specifically Accredited Social Health Activists (ASHAs), Anganwadi workers, Mahatma Gandhi National Rural Employment Guarantee Program (MGNREGP) workers, auto rickshaw/taxi drivers, tailors, and others.
The Minister of State for Labour and Employment responded that the ESI Act of 1948 currently applies to factories and establishments with ten or more employees earning wages up to ₹21,000 (₹25,000 for persons with disabilities), thereby excluding the unorganized sector. The response further stated that the wage ceiling for ESI coverage is periodically revised, with the last revision occurring on January 1, 2017, increasing the limit from ₹15,000 to ₹21,000 per month.
Regarding the ascertainment of Insured Persons (IPs) in the Kollam Lok Sabha Constituency, the Minister stated that the ESI Corporation utilizes an IT-enabled system to verify eligibility and maintain a dynamic list of IPs, updated regularly based on employer submissions, contribution details, and eligibility parameters. IP strength at regional and sub-regional offices is derived from this live system, with all ESIC dispensaries relying on centrally maintained online data.
Finally, the response indicated that there is no current proposal under consideration by the Central Government to increase the ESIC share of IPs in ESIC dispensaries under the control of the IMS in Kerala.
Key Entities Referenced
Anganwadi: A type of rural child care center in India.
Employees State Insurance: A social security and health insurance scheme for Indian workers.
Accredited Social Health Activist ASHA: A community health worker in India's National Rural Health Mission.
Mahatma Gandhi National Rural Employment Guarantee MGNREGP: An Indian labor law and social security measure that aims to guarantee the 'right to work'.
Kollam Lok Sabha Constituency: A parliamentary constituency in Kerala, India.
Employees State Insurance Corporation: The organization responsible for managing the Employees State Insurance scheme in India.
Kerala: A state in India.
Employees State Insurance ESI Act, 1948: The Indian law that provides for Employees State Insurance.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 1360
TO BE ANSWERED ON 28.07.2025
EXTEND THE BENEFIT OF ESI
1360. SHRI N K PREMACHANDRAN:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)whether the Government proposes to extend the benefit of
Employees State Insurance to workers such as Accredited Social
Health Activist (ASHA), Anganawadi, Mahatma Gandhi National
Rural Employment Guarantee (MGNREGP), Auto Riksha,Taxi,
Tailors etc., in the unauthorized sector;
(b)if so, the details thereof;
(c)whether the Government proposes to increase the existing ceiling
of income for providing ESI benefit to deserving class of workers;
(d)if so, the details thereof;
(e)whether the Government proposes to introduce an efficient
mechanism to ascertain the actual number of Insured Persons (IPs)
in Kollam Lok Sabha Constituency;
(f)if so, the action taken to rectify the disparity in the number of IPs
as per the records and register kept in ESI dispensaries under IMS
and IP strength maintained by the Employees' State Insurance
Corporation, Sub-Regional Office;
(g)whether the Government proposes to increase the ESIC share of
IPs in ESIC dispensaries under the control of IMS in Kerala; and
(h)if so, the details thereof?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (d): The Employees’ State Insurance (ESI) Act, 1948 is
applicable to all factories and establishments having ten or more
employees, drawing wages up to Rs 21,000/- (Rs. 25,000/- for Persons
with disability). As such, the Act does not apply to the unorganized
sector.
Contd..2/-:: 2 ::
The revision of wage ceiling is undertaken periodically
from time to time. The last revision in the wage ceiling for coverage
under ESI Act, 1948 was done w.e.f. 01.01.2017, wherein the wage
limit was raised from Rs. 15,000/- per month to Rs. 21,000/- per month.
(e) & (f): The existing IT-enabled system of ESI Corporation verifies
eligibility criteria and maintains a live and dynamic list of Insured
Persons (IPs) for providing the benefits under the ESI Act. This list is
regularly updated based on employer submission, contribution detail
and other eligibility parameters. The IP strength at regional and sub-
regional offices is derived from this live system and all ESIC
dispensaries rely solely on the centrally maintained online data.
(g) & (h): Currently, no such proposal is under consideration of the
Central Government.
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