Esi Act 1948
Esi Act 1948
EMPLOYEE’S
STATE
INSURANCE
ACT 1948
• This act was passed on 1st sept.1948 and
came into force on 1st July 1924.The act
extends to whole of India
Application of the act
According to section 1(4),the act applies to all
factories using power and employing 20 or more
persons on wages. Sub section(5) extends the list
of factories in which the act applies, as under :-
• Smaller power using factories employing 10 o 19
persons.
• Non power using factories employing 20 or more
persons.
• Shops
• Hotels and restaurants
• Newspaper establishment
• Cinemas including theatre
ESI Scheme …
• ESI Scheme for India is an integrated
social security scheme tailored to provide
Social Production to workers and their
dependents, in the organised sector, in
contingencies, such as Sickness,
Maternity and Death or Disablement due
to an employment injury or Occupational
hazard
COVERAGE …
The ESI Act 1948 applies to
• Non – seasonal Factories using power in and
Employing ten (10) or More persons
• Non – seasonal and non- power using factories
and establishments employing twenty(20) or
more persons
• Employees of the Factories and Establishments
in receipt of wages not exceeding Rs.7500 /- Per
month are covered under this Act.
Finances …
• The Scheme is primarily funded by contribution
raised from Insured Employees and their employers
• Payable such as
1. Employees’ Contribution – 1.75% of the Wages
2. Employers’ Contribution – 4.75% of the Wages
TOTAL - 6.5 % of the Wages
• Medical Bonus
Medical Bonus is lump sum payment
made to an Insured woman or the wife of
an insures person in case she does not
avail medical facility from an ESI hospital
at the time of delivery of a child. This
bonus of Rs. 250/- has been increased to
Rs. 1000/- from 1st April 2003
Disablement Benefit …
a). Temporary disablement benefit :
Rehabilitation Allowance
The corporation, vide its Resolution dated
22.12.1979, resolved to grant rehabilitation
Allowance to the IPs, for each day, on
which they remain admitted in an Artificial
limb centre. On the rates, which generally
confirm to double the Standard Sickness
Benefit rate. The above benefit was
introduced with effect from 1.1.1980