The Centre has increased the maternity benefit entitlement to its insured members in the case of confinement from Rs 5000 to Rs 7,500.

The labour ministry has made an amendment to the Employees’ State Insurance Corporation (ESIC) Act to pave the way for increasing the maternity benefit.

The ministry has omitted the provision of the lowered rate of contribution by employees and employers to the Employees’ State Insurance Corporation scheme for new areas.

Rule 51 B of the ESIC Rules implies employers’ contribution at the rate of 3% of the wages of the employee and employees’ contribution at 1% for the beginning two years in areas where the Act is implemented for the first time.

After twenty-four months from the date of implementation of the Act, the rate of contribution shall be reinstated to 4.75% by the employer and 1.75% by the employee according to Section 51 of the Rule.

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