Number of employees paying for Employees’ State Insurance falls again in July after recovering in June

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Updated: Sep 25, 2020 6:17 PM

2.09 crore existing employees paid for ESI in the month of June, which fell to 2.07 crore in July 2020.

EPFO, ESIC, new contributors, EPFO subscribersThe number of new employees paying for the scheme also fell from 8.13 lakh in June to 7.41 lakh in July.

The existing number of employees who paid for the Employees’ State Insurance scheme fell in the month of July, after recovering in June when India stepped out of the nationwide lockdown. 2.09 crore existing employees paid for ESI in the month of June, which fell to 2.07 crore in July 2020. The number of new employees paying for the scheme also fell from 8.13 lakh in June to 7.41 lakh in July. ESI is a self-financing social security and health insurance scheme for Indian workers, which is managed by the Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948.

In an effort to increase the takehome salary of workers as well as reduce the financial burden of employers, the government had reduced the contribution under the ESI Act to 4 per cent from 6.5 per cent. The number of employees contributing to ESI had increased from 2.02 crore in May to 2.09 crore in June after various lockdown restrictions were lifted. 

Also Read: Farm sector to lead economy from front this fiscal; check where farmers may spend increased income

EPFO subscribers

The number of new EPFO subscribers during July rose to 6.1 lakh from 5.38 lakh a month ago. Similarly, the number of exited members who rejoined and resubscribed in the month also increased while the number of members that ceased subscribing during the month significantly fell.  However, the data provided by the Ministry of Statistics and Programme Implementation are likely to undergo significant revision in the next few months as several establishments were closed which may affect the reporting. 

Meanwhile, the salaried jobs took the maximum hit from the lockdown. Engineers including software engineers, physicians, teachers, accountants, analysts and the type, who are professionally qualified and are employed in some private or government organisation, bore the maximum brunt of the disruption, CMIE said in its report.  Employment of these professionally qualified white-collar workers fell steeply to 12.2 million during the wave of May-August 2020, compared to 18.1 million during the wave of January-April 2020, CMIE added. 

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