Employee State Insurance act 1948

‡ The Act is landmark in the history of social security in India. ‡ Its object is to introduce social insurance By providing for certain benefits to employees in case of sickness, maternity, & employment injury & for certain other matters. ‡ These benefits are secured by financial contributions to the scheme both by employers & employees.

Employee State Insurance act vs workman Compensation Act
‡ Employee State Insurance act is much wider in Scope as it covers all persons employed for wages (irrespective whether they are manual, supervisory or salaried employees) are entitled to disablement benefits provided their remuneration does not exceed Rs.15000 per month. (with effect from 01.05.2010 ref. from website). ‡ workman Compensation Act covers only manual workers within the definition of workman .

) other than seasonal factories.Applicability of the Act ‡ It extends to whole of India including state of Jammu & Kashmir. ‡ Act apply to all factories (Including Factories belonging t Govt. . but does not apply if employees are already getting superior benefits.

military or air force. ‡ Mines ‡ Railway running sheds.Act is not applicable to ‡ Seasonal Factories ‡ Any member of Indian Naval. .

Arunachal Pradesh and Mizoram. Manipur. Tripura. ‡ UNION TERRITORIES Delhi. The Scheme has already been implemented in different areas in the following States/Union Territories ‡ STATES All the States except Nagaland. Chandigarh and Pondicher . Sikkim.Coverage of the Act ‡ AREAS COVERED The ESI Scheme is being implemented area-wise by stages.

Definitions.. . .

Appropriate Govt. . or a mine central Govt. or a railway administration . In all other cases it means state Govt.[Sec2(1)] ‡ It means in respect of establishments under the control of central govt.

3 of the act.Corporations[Sec 2(6)] ‡ It means the employees state Insurance Corporation set up under sec. .

Insurable Employment [Sec 2 (13-A)] ‡ It means an employment in a factory or establishment to which this act applies. .

as both employee & employer have to pay their contributions in accordance with the provisions of the act.Contribution(Chapter IV. These contributions are paid to the Employee State Insurance (ESI) Corporation.Sec 38-45B) ‡ The scheme for ESI is contributory. .

‡ Employees in receipt of a daily average wage upto Rs.1. ‡ Currently.70/.75% of the wages and that of employer s is 4. the employee s contribution rate (w. 1.75% of the wages paid/payable in respect of the employees in every wage period.Contribution .are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees .f.97) is 1.e.

‡ The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf. .Collection of Contribution ‡ An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due.

‡ 1st Oct. 1st July to 31st December of the year following . to 31st March Corresponding Cash Benefit period 1st January of the following year to 30th June.Contribution Period and Benefit Period ‡ Contribution period ‡ 1st April to 30th Sept.

Rules Regarding Contribution 1. Sum deducted by the principal employer entrusted to him for paying contribution(sec 40(4)) .(Sec 40(3)) 4. Principal employer can deduct employee s contribution from his wages(sec 40(2)) 3. Principal employer to pay wages in first instance(Sec 40(1)) 2. Employer s contribution can t be deducted from employee s wages.

‡ ‡ ‡ ‡ .Object of ESI act To introduce social insurance by providing for certain benefits to employees in case of Sickness Maternity Employment injury & for certain other matters.

which has been setup by central govt.Administration of the Act ‡ ESI scheme is being administered by ESI corporation. to act as an Executive body. ‡ A standing committee has been constituted from among the members of ESI Corp. has been empowered to appoint inspectors. Regional boards. . & regional & local medical bodies & delegate to them such powers as provided by regulations. local committees. ‡ A medical council has been set up to advise ESI corp. on medical questions ‡ ESI corp.

Medical Benefit 6. Dependant s Benefit 5. Disablement Benefit 4. Maternity Benefit 3. Sickness benefit 2.Benefits available under the Act ‡ ‡ ‡ ‡ ‡ ‡ 1. Funeral Benefit .

‡ Sickness must be certified by duly appointed Medical Practitioner . ‡ It is not to be paid to any person for more than 91 days.&49 & Rule 55] ‡ In the form of Periodical cash payments ‡ Payable to insured person. Sickness benefit[Sec 46(i)(a). . ‡ Sickness benefit for the first two days is not to be paid to insured unless it recurs within 15 days.1.

2.&50 & Rule 56] ‡ In the form of Periodical cash payments ‡ Payable to insured women. . Maternity Benefit[Sec 46(i)(b). ‡ Rates & periods thereof shall be such as prescribed by central Govt. ‡ Payable to insured women in case of :± Confinement or ± Miscarriage or ± Sickness arising out of pregnancy ± Premature birth of a child.

.Maternity benefit . ‡ Benefit is payable only if the woman employee does not work during the said period & Medical certificate is furnished.

Disablement Benefit ‡ Periodical payment ‡ Payable to insured who± Suffers from disablement ± As a result of employment injury ± Sustained as an employee.3. ‡ certified by insurance medical officer. ‡ In case of Permanent Disablement as prescribed by Central Govt . ‡ Temporary disablement only if it exceeds 3 days.

.4. amount equal to 2/5 of the full rate until she attains 18 years or marriage whichever is earlier.benefits will be as: ± To the widow during life or until remarriage amount equal to 3/5 of full rate. ± To each legitimate or adopted daughter . ± To each legitimate or adopted son . amount equal to 2/5 of full rate until attains the age of 18 years. Dependant s Benefit ‡ On the death of insured person as a result of injury .

.‡ In case of no child or widow : ± To parent or grand parent amount equal to 3/10 of full rate.

5. specialist consultation and hospitalization to insured persons and also to members of their families. Medical Benefit ‡ in the form of medical attendance. treatment. drugs and injections. .

For the families:‡ FULL MEDICAL CARE hospitalization facilities specialist services drugs and dressings and diets ‡ EXPANDED MEDICAL CARE special medicines & Drugs special laboratory tests and X-Ray examinations .

Funeral Benefits ‡ An amount of Rs.6. 5000/.is payable to the dependents or to the person who performs last rites .

[Sec 75] ‡ ‡ ‡ ‡ ‡ Whether any person is an employee The rate of wages The rate of contribution payable. . Who is principal employer The right of any person to any benefit.Adjudication of Disputes ‡ Constitution of Employees Insurance Court [Sec 74] ± Qualification of Judge: ‡ A judicial Officer ‡ A legal practitioner of five year s standing ‡ Matters to be decided by Employees Insurance Court.

Commencement of Proceedings ‡ Application shall be made within a period of 3 years from the date on which the cause of action arose.[Sec 76& 77] .

Appeal[sec 82] ‡ Appeal against the order of Employees Insurance Court to the high court is allowed only under substantial question of law within 60 days. .

2000 or both Imprisonment upto 3 years(Min. Imprisonment upto 5 years(Min. 2 Year)& fine upto 25000 Imprisonment upto 2 years& fine upto 5000 .Penalties under the Act 1.[Sec 85](a)Failure to pay employees Contribution deducted from wages (b)Failure to pay Contribution Reduction of wages under sec 72 On every subsequent offence committed after conviction of contravention of 2(a) &(b) above On every subsequent offence committed after conviction for the same offence being any other offence Imprisonment upto 6 months &Fine upto Rs. 1 Year)& fine upto 10000 Imprisonment upto 3 years(Min 6 months)& fine upto 5000 Imprisonment upto 1 years& fine upto 4000 or both.False Statement[Sec 84] 2.