ESIC sees 9% rise in job registrations in September 2024

Formal job creation under the ESI scheme records a steady rise, with over 2 million new registrations, reflecting India's expanding social security net

November 20, 2024

Youth aged 25 and below accounted for 48.8% of total registrations, highlighting ESIC's appeal to the younger workforce

Gender analysis revealed 0.39 million female enrolments and 64 transgender employees, underlining ESIC's inclusivity

ESIC provides medical care, unemployment cash benefits, maternity benefits, and pensions for employees earning up to INR 21,000 monthly

Nearly 23,043 new establishments were added under the ESIC scheme in September, compared to 28,917 in the previous month

Formal job creation under the Employees’ State Insurance Corporation (ESIC) witnessed a notable 9.04% year-on-year growth in September 2024, with 2.05 million new registrations compared to 1.88 million in the same period the previous year. However, on a month-on-month basis, there was a marginal decline of 0.9% from August’s 2.07 million registrations, according to data from the Ministry of Labour and Employment.

The provisional payroll data also indicated a reduction in new establishments registered under the ESI scheme, with 23,043 added in September, down from 28,917 in August.

Nearly half (48.8%) of the new registrations—equating to 1.0 million employees—belonged to the age group of up to 25. This highlights the scheme’s growing role in providing social security to younger workers entering the formal labour market. The gender-wise analysis reflected 0.39 million female employees added to the scheme in September, alongside 64 transgender individuals. This underscores ESIC’s commitment to extending its benefits across all sections of society, including traditionally underserved groups.

ESIC, one of the two major statutory social security organisations under the Ministry of Labour and Employment, operates under the ESI Act of 1948. The scheme covers employees earning up to INR 21,000 monthly, requiring a 4% contribution split between employees (0.75%) and employers (3.25%).

The funds provide employees and their dependents with medical care, maternity benefits for women, unemployment cash benefits in specific cases, and pensions in the event of employment-related disablement or death. With its expanding coverage, ESIC is pivotal in ensuring social security for India’s workforce while addressing inclusivity and gender equity in formal employment.

Source: Economic Times

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