Budget private schools criticise inclusion in ESI -Governance Now

Budget private schools criticise inclusion in ESI

The move to subscribe to the Scheme to Promote Registration of Employees/ Employers (SPREE) has created problems for cash-strapped schools, said NISA

GN Bureau | January 18, 2017

#NISA #budget private schools #Scheme to Promote Registration of Employees/ Employers #ministry of labour

National Independent Schools Alliance (NISA) has criticised the move of the Ministry of Labour and Employment to amend Employees’ State Insurance (ESI) Act of 1950 to include private educational institutions under its ambit.

NISA, which is a group of budget private schools, said that the move pressing schools to subscribe to the Scheme to Promote Registration of Employees/ Employers (SPREE) has brought the schools in a flux to increase their fees in order to adhere to the government’s stringent norms and pay up the aggregated arrears.

NISA president Kulbhushan Sharma said, “The ESI Act, since its inception, was provisioned for labourers working in hazardous industries. The recent announcement considers teachers as labourers and makes it mandatory for the schools. There is no logical reason that schools and teachers be included in this provision as we are not engaging in any hazardous activities that we would require ESI protection.”

“These social welfare legislations are meant to ensure better standard of health and welfare of employees but the heavy penalties being charged are an enormous burden on the already cash strapped budget private schools. The schools are in no position to pay the arrears retrospectively,” added Sharma.

NISA demanded that the budget private schools enrolled in this scheme before 2016 should be exempted from paying the aggregated arrears and the new schools enrolling from present year make payments from this progressive date.

Amit Chandra, policy advisor, NISA said, “ESIC does not have adequate number of hospitals in its network and adequate facilities to cater to the need. Bearing these facts in mind, the government should give a choice to the employees to choose a healthcare option including the health insurance scheme launched by prime minister Narendra Modi and it should not come as a forced decision like ESIC. If further forced to comply with the ESI Act, it would lead to increase in school fees and an added burden to parents.”

Also read: AAP government takes on greedy private schools

Comments

Other News

From one cow to a dairy business

In 2012, Anita Dash wasn`t dreaming of building a dairy brand. She wasn`t studying business models or planning market expansion. Like countless mothers across India, her focus was on something much simpler: giving her children a better future. At the time, her most valuable

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Food inflation: Not a macroeconomic statistic but a developmental indicator

India`s retail inflation shows a reassuring picture at first glance. According to the latest data, Consumer Price Index (CPI) inflation edged up to 4.38% in June 2026 from 3.93% in May 2026, but continued to remain within the Reserve Bank of India`s (RBI) target band of 4% (+/- 2%). However, beneath this

Skin in the game or masterful market timing?

When a company founder opens their personal chequebook to buy shares in their own business, stock markets usually applaud. To the average retail investor, it feels like the ultimate vote of confidence, a sign that the people running the show have real skin in the game and believe brighter days are ahead.

India’s freedom struggle was shaped by wider Asian political thought

As we mark 80th anniversary of independence, ‘Asianism and the Fall of Empire’ (HarperCollins India) by historian Mithi Mukherjee offers a new perspective on Ind