Current PPT Talks About The Employee State Insurance[ESI] Act,1948 & It's important Provisions...

1. The Employee State Insurance[ESI] Act,1948
By-Subodh Shahare
M.Sc.(Biotech) & M.B.A(HRM)
Indian Institute Of Cost & Management
Studies & Research, Pune.

2. Objectives
 ESI Act,1948 provides certain benefits to employees in case of sickness,maternity,and
employment injury.
 It is a social security law conferring the benefits to the employees.
 It extends to whole of India.
 Under ESI Act all workers including manual & casual, drawing wages upto a certain amount were
entitled to the benefits unlikely that of WCA,1923 which provide benefits to only manual
workman's.
 ESI Act,1948 applicable to;
a) All factories working with aid of power where 10 or more workers are employed and,
b) All factories working without the aid of power where 20 or more workers are employed.
 ESI Act isn’t applicable to,
i. Seasonal Factories,ii. Factories under the control of Government where employees are
getting better benefits,iii.Indian Army,Navy,Air Force,iv.Factories working with the aid of
power where less than 10 workers are employed,v. Factories working without the aid of
power where less than 20 workers are employed,vi.Mines,vii.Employees drawing wages
exceeding such amount as may be specified(Now Rs.10,000)

3. Benefits Under ESI Act,1948
 As provided in Section 46 of the ESI Act, the insured person, their dependents shall
be entitled to the following benefits:
a. Sickness Benefit- Periodical payment to any insured person in case of his
sickness certified by a duly appointed medical practitioner.
b. Maternity Benefit- Periodic payment to an insured woman in case of
miscarriage or sickness arising out of pregnency,premature birth of child, certified
by an authority specified in this behalf by the regulation.
c. Disablement Benefit- Periodical payment to any insured person suffering from
disablement as a result of an employment injury sustained as an employee under
the ESI Act,1948 provisions.
d. Dependent’s Benefit- Periodical payment to dependents of insured person who
dies as a result of an employment injury sustained as an employee under ESI
Act,1948 provisions.
e. Medical Benefit- Medical treatment for and attendance on insured person.
f. Funeral Expenses- Payment towards expenditure on the funeral of the died
insured person.

4. Continued...
A. Disablement Benefits-
a. A person can claim disablement benefits for temporary disablement for
not less than three(3) days(excluding the day of accident) for the period of
such disablement.
b. A person qualified to claim periodical payment for permanent
disablement sustained as an employee whether total or partial for such
disablement.
Disablement benefits shall be payable to the insured person as follows,
i. For temporary disablement at the full rate as prescribed under ESI Act,
1948 provisions.
ii. For permanent total disablement at the full rate as prescribed under
ESI Act, 1948 provisions.

5. Continued....
B. Dependents' Benefits-
Dependents benefits shall be paid to the dependents of the insured person who
dies as a result of an employment injury, in the following manner;
a. To the widow during the life until remarriage, an amount equivalent to
three fifth(3/5th) of the full rate and in case of 2 widows of same individual
the amount can be divided equally between 2 widows.
b. To each legitimate or adopted son, an amount equivalent to two fifth(2/5th)
of the full rate until he attains the age of eighteen years(18years)
c. To each legitimate or adopted unmarried daughter, an amount equvilent to
two fifth(2/5th) of the full rate until she attains the age of eighteen years
(18years) or until marriage.
d. To the widowed mother during life an amount equivalent to two fifth(2/5th)
of the full rate.

6. Contribution Payable Under ESI Act,1948
 Section 39 of the ESI Act,1948 provides the following provisions for contribution:
a. Contribution payable in respect of an employee shall comprise contribution by the
employer and by the employee and shall be paid to the Employee State Insurance
Corporation(ESIC)
b. If any contribution is not paid by the principal employer on the date on which
such contributions become due he shall be responsible and liable to pay simple
interest of 12% per annum or at such higher rate as may be specified in the
regulation till the date of its actual payment.
c. Employees contribution shall be payable by or on behalf of an employee whose
average daily wages during a wage period are below Rs.10,000 per month as per
current ESI Act Provisions defined by Central Government. The contribution both
of employees and employers shall be payable by the principal employer to ESI
Corporation within prescribed time limit.
d. Principal employer can’t deduct employers contribution from any wages payable
to employee nor can recover it from employee.

7. Continued..
 Rate Of Contribution- As per rule 51 of the ESI Act,1948 contribution
for a wage period shall be in respect of,
a. Employers contribution a sum (rounded off to the next higher rupee) equal
to 4.75% of the wages payable to an employee;
b. Employees contribution a sum (rounded off to the next higher rupee) equal
to 1.75% of the wages payable to an employee.

8. Employee State Insurance Corporation(ESIC)
 In terms of Section 3 of the ESI Act the Central Government by notification in the
official gazette, established for the administration of the scheme of employees state
insurance a corporation known as the Employee’s State Insurance Corporation.
 The corporation consist of following members-
a) A chairman by C.Government
b) A vice chairman C.Government.
c) Not more than 5 persons appointed from Central Government
d) 1 person each representing each of the states.
e) 1 person appointed by Central Government to represent the Union Territories.
f) 10 persons representing employers association & 10 employees association.
g) 2 persons representing the medical profession organisation of medical
practitioners.
h) 3 members of parliament of whom 2 representing Loksabha and 1 members from
Rajyasabha.
i) The Director General of the Corporation ex-officio.

9. Medical Benefit Council
 The provision of Section 10 of the ESI Act,1948,the C.Government
constituted Medical Benefit Council for administration of the benefits
payable under the Act. The council consist of the following.
a) The Director General, Health Services,ex officio,as chairman.
b) A Deputy Director General, Health Services, appointed by C.Government.
c) Medical Commissioner of the corporation.
d) 1 member each representing each of the states.
e) 3 members representing Employers Association & 3 members representing
Employees Association.
f) 3 members of whom not less tan 1 shall be a woman, representing the
medical profession.

11. THANK YOU!!!