12 Nov 2020

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.
Six kinds of benefits are provided under
the Act:
 Sickness benefit
 Maternity benefit
 Disablement benefit
 Dependents’ benefit
 Medical benefit and
 Funeral expenses.
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/-
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.
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.

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.
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.
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/-
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.
Form 1
declaration form.
Form 3
return of declaration form.
Form 6
return of contribution [half yearly
returns].
Form 16
application for accident
report.
 Form 37
certification of employment.
Form 53
application for change of dispensary branch office.
Form 72
application for duplicate ESI card.
Form 1B
change in family declaration report.
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
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 Rs. 3,000/- from Rs. 2,500/-
THANK YOU.