The Employees' State Insurance (ESI) Act of 1948 provides sickness, maternity, disability and medical benefits to employees of factories and establishments with 20 or more employees earning wages up to Rs. 10,000 per month. Both employers and employees contribute monthly at rates of 4.75% and 1.75% of wages, respectively. Benefits include sickness benefit, maternity benefit, disability benefit, dependents' benefit, medical benefit, and funeral expenses. Contributions are paid within 21 days of the end of each month. Failure to comply with provisions of the Act can result in fines or imprisonment. Benefit rates were revised upward in December 2007.
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The Employees' State Insurance (ESI) Act of 1948 provides sickness, maternity, disability and medical benefits to employees of factories and establishments with 20 or more employees earning wages up to Rs. 10,000 per month. Both employers and employees contribute monthly at rates of 4.75% and 1.75% of wages, respectively. Benefits include sickness benefit, maternity benefit, disability benefit, dependents' benefit, medical benefit, and funeral expenses. Contributions are paid within 21 days of the end of each month. Failure to comply with provisions of the Act can result in fines or imprisonment. Benefit rates were revised upward in December 2007.
The Employees' State Insurance (ESI) Act of 1948 provides sickness, maternity, disability and medical benefits to employees of factories and establishments with 20 or more employees earning wages up to Rs. 10,000 per month. Both employers and employees contribute monthly at rates of 4.75% and 1.75% of wages, respectively. Benefits include sickness benefit, maternity benefit, disability benefit, dependents' benefit, medical benefit, and funeral expenses. Contributions are paid within 21 days of the end of each month. Failure to comply with provisions of the Act can result in fines or imprisonment. Benefit rates were revised upward in December 2007.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
The Employees' State Insurance (ESI) Act of 1948 provides sickness, maternity, disability and medical benefits to employees of factories and establishments with 20 or more employees earning wages up to Rs. 10,000 per month. Both employers and employees contribute monthly at rates of 4.75% and 1.75% of wages, respectively. Benefits include sickness benefit, maternity benefit, disability benefit, dependents' benefit, medical benefit, and funeral expenses. Contributions are paid within 21 days of the end of each month. Failure to comply with provisions of the Act can result in fines or imprisonment. Benefit rates were revised upward in December 2007.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
OBJECTIVE The object of the Act is to secure sickness, maternity, disablement and medical benefits to employees of factories and establishments and dependents’ benefits to the dependents of such employees. APPLICABILITY
1. To all Factories &
establishments employing 20 or more employees.
2. Every employee drawing
wages upto Rs. 10,000/- per month. Contribution under ESI Act,1948 1. Employees : 1.75% on total monthly wages
2. Employer : 4.75% on total monthly
wages Time & Method for payment of Contribution • Both the employer’s and the Employees’ contribution are to paid in cash or by cheque , into the State Bank of India or any other bank authorized by the ESI Corporation, by filling in a prescri-bed Challan in quadruplicate within 21 days following the end of the calendar month in which the contribution falls due. The Bank will retain two copies of the Challan and return other two to the employer, one for submitting to the Regional Office of the Corporation and the other for the record of the employer. Procedure for Registration The employer of a factory or an establishment desirous of registering it under the Act has to send to the Regional Office within 15 days from the Act becomes applicable to it a Declaration of Registration in the prescribed form. Upon receipt of the Declaration of Registration the Regional Office shall if satisfied that the factory or the establishment is covered by the Act, allot to it a Code Number and thereupon the factory or the establishment shall stand registered under the Act. Benefits under the Act Six kinds of benefits are provided under the Act: Sickness benefit Maternity benefit Disablement benefit Dependents’ benefit Medical benefit and Funeral expenses. Benefits under the Act 1. Sickness benefit : • Insured employees is entitled to receive for the period of his sickness as the daily “standard benefit rate”. • Minimum 78 days of the corresponding contribution is must. • Benefit is not available for the first 2 days of sickness. • Maximum period for benefit is 91 days in one year.
“Standard benefit rate” : The daily rate which
sickness benefit is payable to an insured employee during the period of his sickness. Lowest rate is Rs. 14/- Highest rate is Rs. 195/- Benefits under the Act 2. Maternity benefit : • Confinement, miscarriage or medical termination of pregnancy, • Sickness arising out of pregnancy, confinement, premature birth of child or miscarriage or medical termination of pregnancy. • Minimum 80 days in the immediately preceding two consecutive contribution periods is must. • Maximum period for benefit is 91 days in one year. Benefits under the Act 3. Disablement benefit : • Permanent disablement, whether total or partial, as a result of an employment injury ( personal injury caused by an accident arising out of and in the course of employment).
• Benefit for the whole of life.
Benefits under the Act 4. Dependents’ benefit : • When an insured employee dies as a result of an employment injury, his widow and children and in case the employee does not leave behind him a widow or children, his other dependants, are entitled to receive periodical payments. Benefits under the Act 5. Medical benefit : • Sickness of Insured employee or (where medical benefits is extended to his family) a member of his family. • Available to the employee during any period for which contributions are paid in respect of him or in which he can claim sickness benefit. Benefits under the Act 6. Funeral expenses : • In case of death of an insured employee, the eldest surviving member of his family, and if the employee had no family or was not living with his family at the time of his death, then the person who actually incurs expenditure on the funeral of the employee, is entitled to receive the a payment called “funeral expenses”.
• Maximum permissible amount of such payment is
Rs. 2500/- Benefits cannot be combined An employee is not entitled to receive two benefits at the same time. That means he cannot receive for the same period. (a) Both sickness benefit and maternity benefit; or (b) Both sickness benefit and disablement benefit for temporary disablement; or (c) Both maternity benefit and disablement benefit for temporary disablement. Offences If any person - (a) Fails to pay any contribution payable by him under the Act; or (b) Deducts from the wages of an employee the employer's contributions ; or (c) Fails to submit any return required by the regulations, or makes a false return. He would be punished with imprisonment upto 1 year or with fine upto Rs. 4000/- or with both Revision w.e.f. 01.12.2007
The Employees State Insurance (ESI) Corporation, a statutory
body headed by the Union Labour minister, has revised its benefit rates of those insured and employers coming under the sub-regional office, ESI Corporation Pune. The rates are revised as follows w.e.f. December 1, 2007:
1. The daily rates of sickness benefit as given under rules 55 has
been increased by 20 per cent.
2. Daily rates of disability benefits have been increased to 50 per
cent form 40 per cent.
3. Daily rates of dependent’s benefit have been increased to 50
per cent from 40 per cent.
4. Funeral expenses given under rule 59 has been increased to