ESIC can invest up to 15 per cent surplus funds in equity through ETFs

Tags: place in news National Economy/Finance

The Government of India has  allowed Employee State Insurance Corporation (ESIC) to invest up to 15 per cent of its surplus funds into equity through exchange-traded funds (ETFs).

The decision was taken at an ESIC meeting chaired by the Union labour minister Bhupender Yadav at the corporation's headquarters in New Delhi on 4 December 2022.

A labour ministry statement said that the decision to invest surplus funds into equity was taken due to the low returns on debt instruments and the need to diversify the corporation's portfolio. The initial investment shall start at 5% and increase up to 15% gradually, after review of two quarters. The investment will be confined in Exchange Traded Funds i.e., Nifty50 and Sensex. It will be managed by Fund Managers of AMCs.

New hospital in Agartala and in Idukki  

ESIC approved the proposals for setting up a new 100 bedded ESIC Hospital at Shyamlibazar, Agartala, Tripura and 100 bedded ESIC Hospital at Idukki, Kerala. 

Nirman se Shakti initiative 

The Union Minister Bhupendra Yadav said that the ‘Nirman Se Shakti’ initiative has been started to strengthen and modernize the infrastructure of hospitals and dispensaries in a phased manner.

WHAT IS ESIC 

The Employees State Insurance (ESI) Scheme is one of the largest social security schemes in the world which comes under the Employees State Insurance Corporation (ESIC) under the Union Labour and Employment Ministry.

The ESIC was set up in 1952 under the ESI act 1948.

It provides medical benefits to the insured employees and their dependents under the scheme. There is no limit on the medical expense.

Who are eligible?

It is applicable on factories employing 10 or more workers.

It is applicable on shops, establishments, insurance, Non-Banking Financial Companies etc employing 20 or more persons.

Wage Limit 

It provides medical insurance facility to workers earning up to Rs.21, 000/- per month (Rs.25, 000/- per month in the case of Persons with Disability).

Contribution

The insured employee has to contribute   1% of his monthly wages per month to the scheme and the employer is required to contribute 3% of the employee’s wages to the Scheme.