ESI coverage extended to casual, contractual workers of municipal bodies

The Minister of State for Labour and Employment (Independent Charge), Santosh Kumar Gangwar (Image Source: PIB)

In a bid to provide social security cover to casual and contractual workers working in the municipal bodies, the Labour Ministry on June 10 said that it will extend the medical and other benefits under Employees’ State Insurance (ESI) to them.

ESI Corporation has been directed by the Ministry of Labour & Employment to  take up the matter with the States and UTs for issue of notification for coverage of casual and contractual workers in the municipal corporations and councils in their respective jurisdictions.

The coverage shall be extended to those casual and contractual employees/ agencies/ establishments which are within the implemented areas already notified under the ESI Act, 1948 by the Central Government, Labour Ministry said in a statement.

Once the notifications for ESI coverage are issued by the respective States/ UTs, the casual and contractual workers working with municipal bodies will be able to avail the full gamut of benefits available under the ESI Act such as sickness benefit, maternity benefit, disablement benefit, dependent’s benefit, funeral expenses etc.

"In addition and importantly, these workers will be eligible to avail medical services through vast network of ESI facilities  in 160 hospitals and over 1500 dispensaries all over the country," the statement added.

According to the statement, various municipal bodies in different States and Union Territories in the country employ a large number of casual and contractual workers. However, not being regular employees of the Municipal Corporations/Municipal councils, these workers remain out of the social security net making them a vulnerable lot.

"ESI coverage of casual and contractual employees working with municipal bodies shall go a long way in providing social security cover to a very vulnerable segment of the workforce. This shall contribute to social upliftment of this segment of workforce and their families," Labour Minister Santosh Kumar Gangwar said.