In what can be a major setback for charitable organizations (including schools, NGOs, boardings, shelter homes etc…), Employee State Insurance (ESIC) has been extended PAN India to all districts and all establishments employing more than 10 employees in her announcement made today by our Honorable Finance Minister during the second tranche of Special Economic Package.

The point wise summary on changes in ESIC is given below for your quick reference:

1)Extension of ESIC coverage panIndia to all districts and all establishments employing 10 or more employees as against those in notified districts/areas only.
2)Extension of ESIC coverage to employees working in establishments with less than 10 employees on voluntary basis.
3) Mandatory ESIC coverage through notification by the Central Government for employees in hazardous industries with less than 10 employees.

However, in our view, we should await the press release or notification in this regard for confirmation of its applicability on charitable organizations. For more details, check our newsletter 9 in the bulletin tab.