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Extension of ESIC Scheme to the Casual/Contractual workers under Municipal Corporation/Municipal Bodies under the control of State Government/UT Administration.


Contents News/Article Date: 22nd May  2023

Relating to which Act: The Employees’ State Insurance (ESI) Act, 1948          

Penalty under the Act: Section 84 prohibits employees from making false/wrong statements for availing benefits under the Act. Any person who illegally avails benefits not meant for him using false information is punishable. The punishment for this is imprisonment up to 6 months and/or fine up to Rs. 2,000.

Section 85: Penalty for non-compliance with provisions

Section 85 (a) to (g) basically contains compliances which employers and managers have to carry out. Consequently, failure to do so can make them liable for punishment as Section prescribes. Punishment may be in the form of either imprisonment or fine or both.

Section 85(a): Penalty for failure to pay a contribution

All employers under the Act have to periodically pay some money to the ESI Corporation for the benefit of employees. Non-payment of this contribution is a serious offense because it directly affects insurable employees.

Applicable to which State: All the States and Establishments covered by the ESI Act

Type: ESIC circular No. P 11018 / 1 / 2021 / dated 22nd May 2023 issued by ESIC Head Quarters in Delhi   

Pertains to: All ESIC members

Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.

Karma Global does excellent work on providing ESI Services both to establishments as well as Insured Employees and in this respect, it will inform all its clients and insured employees about the many announcements that the Government has made in terms of expansion of ESI Scheme, so as to make it available in the remotest of places viz. 744 districts and also to make health facilities and medical colleges in progressive districts of our country further expanding post graduate medical seats.

And in this instance: The following State Governments/Union Territory Administrations have issued the final notification under Section 1(5) of the ESI Act, 1948, for the extension of coverage to the Casual and Contractual workers engaged under Municipal Corporations and


Municipal Councils in the respective States/Union Territories under Employees’ State Insurance Act, 1948.

  • Gujarat
  • Andhra Pradesh
  • Jharkhand


Subject: Extension of ESIC Scheme to the Casual/Contractual workers under Municipal Corporation/Municipal Bodies under the control of State Government/UT Administration.


Attached is the notification



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