Bangalore Chamber of Industry and Commerce

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"Recommendations on measures for implementation by the State Government post lockdown pertaining to Employees State Insurance Corporation (ESCI) to bear the 60% of the salary": BCIC, 23rd April, 2020

To get partial relief for MSME Sector, we the Chamber had urged the Central and State Government to direct Employees' State Insurance Corporation (ESIC) to help employers and employees amid COVID-19 outbreak since MSME is facing a severe cash crunch.

As per the ESI Act, an employee covered by the ESI Act can avail up to 91 days sick leave and get payment up to 60% of his wages during the 91 days. In this regard under this provision, during the period of lockdown/seal down, ESI covered employees who are not able to work should be paid wages as if they are availing sick leave which will help the employees to get sustenance and reduce the burden on the employer. In this way employment can be saved and industries will be helped to continue the service of employees and run the business in future

Since ESIC has a huge fund which is collected from the workers and employers they should use it now to help workers, employers and the nation.

 

By Devesh Agarwal, President, BCIC