ESI ACT ,1948

The Employee State Insurance Act 1948 provides for certain benefits to employees in case of sickness ,maternity and employment Injury and also make certain other provisions . The act extends to the whole of India and to all the factories(with 20 or more employees ) except the seasonal Factories .

Act makes cumpulsory that subject to the provision of act all employees in factories or establishment to which this applies shall be insured in the manner provided by this act .Such insured persons shall pay contribution towards Insurance Fund through their employers who will also pay their contribution . Such insured people will get certain benefits from the ESIC FUND .

ESIC Fund is used for the foll purposes ::

a) To pay for the benefits and provision of Medical Treatment .
b) To pay for the fees and allowances to the members of the corporation .
c) To pay for the salaries , leave , joining time allowance , travelling & compensatory allowances ,Gratuity & Pension .
d) For the establishments of Hospitals , dispensaries & other institutions.
e) To defray the cost of auditing accounts of corporations and valuation of assets & Liabilities .

ESIC Contribution ::

Rule 51 states that a total of 6.5 % of contribution has to be made .Out of which ER has to make 4.75% and 1.75 % has to be made by the employee .

Who all are covered under ESIC ??

All employees who earn < or =10,000 a month are to be covered under ESIC ACT .Any employee who earns > than 10,000 is not to be provided for any ESIC Benefits .

Incase if disabled employees the min limit is 25,000 per month and also for 3 years Employees contribution is paid by the Govt .

Some basic Info abt ESIC ::

1) Employees whose basic average daily wages during a wage period is Rs 15 or less than Rs 15 are exempted to make any contribution .

2) Principal employer shall pay in respect of employee whether directly employed by him or on contract . He can get the same recovered by the immediate employer later .

3) Only the employee's contribuition has to be deducted from employees wages and not the Employer's contribution .

4) If Principal employer fails to pay the amount then he is liable to pay simple interest of 12% pa or at such higher rate as specified in the regulation .

ESIC Insurance Court ::

All disputes relating to ESI are to be heared in ESIC Court .

Employee Benefits under ESIC ::

1) Periodical payments in case os sickness certified by a medical Practitioner ;
2) Periodical PAyments to an insured workmen in case of miscarriage or sickness arising out of pregnancy , confinement ;
3) periodical payment to an insured person suffering from disablement as a result of employment injury ;
4) Periodical payment to dependents of insured Persons ;
5) Medical treatment and attendence on insured person ;
6) Payment of funeral expenses on the death of insured person @ prescribed rate of RS 1500/- .