Left Menu
Development News Edition

AITUC criticises govt's decision to cut ESI contributions

PTI | New Delhi | Updated: 14-06-2019 17:42 IST | Created: 14-06-2019 17:41 IST
AITUC criticises govt's decision to cut ESI contributions
Image Credit: Pixabay

The All India Trade Union Congress (AITUC) Friday said it strongly opposes the government's "unilateral decision" to cut contributions made by employers and employees towards the ESIC health insurance scheme. The AITUC demanded that instead of reducing the rate of contribution, more benefits should be planned under the health insurance scheme and inspections should be restored to ensure compliance.

The government Thursday announced a cut in contributions made by employers and employees towards the health insurance scheme of Employees' State Insurance Corporation (ESIC) to 4 per cent from the existing 6.5 per cent, a move which would lead to an estimated annual saving of around Rs 5,000 crore for firms. "The AITUC strongly opposes the unilateral decision of the central government to reduce (ESI) scheme contributions," an AITUC statement said.

It pointed out that Employees' State Insurance Corporation (ESIC) has a tripartite standing committee and a board in which trade union representatives had opposed the idea. The reasons cited for this decision, in spite of trade unions' opposition, that this will encourage more employers to cover their employees and more workers will come into the formal sector are patently false, as inspection for coverage has been abolished, it added. The union said that ease of doing business and reducing the burden of the employer were the main reasons for taking this decision.


TRENDING

OPINION / BLOG / INTERVIEW

Why COVID-19 is unstoppable in USA despite it being ranked at the top of GHS Index?

Several worst-hit countries such as Italy, France, Spain, the UK, Canada, and Russia have peaked COVID-19 cases in April. Almost all of them have gradually flattened the curve. However, the USA is setting new daily records of infections tha...

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

Videos

Latest News

Cardinals owner Bidwill tests positive for COVID-19

Arizona Cardinals owner Michael Bidwill tested positive for the coronavirus and is hospitalized, the team revealed on Friday. The Cardinals said Bidwills symptoms have subsided and that the 55-year-old could be released this weekend.The clu...

11 people drowned at rocky beach in northern Egypt

Eleven people drowned off the coast of northern Egypt, local authorities said Friday, at a beach known for its rocky jetty and fast-moving waters. The tragedy unfolded at a beach in the Mediterranean city of Alexandria, when a young boy ran...

Hong Kong police search pollster's office days after security law introduced

Hong Kong police searched the office of an independent political pollster on Friday, 10 days after Beijing imposed sweeping national security legislation that has sent a chill across the former British colony.The raid came ahead of weekend ...

Trump commutes longtime friend Roger Stone's prison sentence

President Donald Trump commuted the sentence of his longtime political confidant Roger Stone on Friday, just days before he was set to report to prison. Democrats denounced the move as just another in a series of unprecedented interventi...

Give Feedback