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Labour Laws Central Ministry of Labour and Employment Employees' State Insurance Act, 1948

Grant of increase to compensate the erosion in the real value of PDB & DB due to inflation

05-Feb-2024 | No. R-12/16/9/2022-Policy-BFT-II

ESIC has issued Memorandum stating the approval of an increase in the rate of Permanent Disablement Benefit (PDB) and Dependants' Benefit (DB) by the Employees State Insurance Corporation. The enhancement is effective from August 1, 2022, for cases where employment injuries resulting in disablement or death occurred on or before December 31, 2021.

The document provides a detailed breakdown of the percentage increase in both PDB and DB rates for various years of disability or death, starting from cases before 1952 up to cases occurring after 2021. The increase is aimed at compensating for the erosion in the real value of PDB and DB due to inflation.

Several important instructions are included by virtue of the Memorandum, such as not rounding off the PDB or DB rates, implementing the revised rates immediately in the ESIC ERP system, and emphasizing the payment of arrears from August 1, 2022, to beneficiaries before February 28, 2024. The communication also encourages the use of Electronic Clearing Service (ECS) for payment and calls for wide publicity by displaying the instructions on notice boards and sharing copies with relevant stakeholders.

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