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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020

Under the Code on Social Security, 2020, ESIC collects user charges from other beneficiaries referred to in section 44. How are these user charges treated?

User charges collected from the other beneficiaries referred to in section 44 are deemed to be contribution and form part of the Employees' State Insurance Corporation. They are not refunded, nor held outside the Fund.

  1. AThey are deemed to be contribution and form part of the Employees' State Insurance Corporation's fundsCorrect
  2. BThey are refunded to the beneficiaries at year end
  3. CThey are kept outside the Fund as a separate account of the Central Government
  4. DThey are treated as a donation that the Corporation may decline

Explanation

The proviso to section 25(1) states that user charges collected from other beneficiaries under section 44 are deemed to be contribution and form part of ESIC. They are therefore not refunded or held separately by the Central Government.

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