1the employees state insurance act, 1948

7/31/2019 1The Employees State Insurance Act, 1948

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The Employees State

Insurance Act, 1948


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Objectives

To provide medical relief, sickness cashbenefit, maternity benefits to women

workers, pension to the dependents of

deceased workers and compensation for

fatal and other employment injuries

including occupational diseases, in an

integrated form through a contributory

fund.(where a workman is covered underESI Scheme, no compensation could be

claimed from his employer under the Workmens compensation Act)


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Scope and coverage

Extends to the whole of India

Applies to all factories including govt

factories but excluding seasonal factories.

All other establishments like hotels,

restaurants, clubs, cinemas, newspaper

establishments & shops which more than

20 workers


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Exemption Factories working with the aid of power wherein


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Exemption from Maternity Benefit

Act, 1961 and Workmens

Compensation Act, 1923

An employee covered under ESI Act is

exempt from the provisions of the abovetwo acts


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Employees Entitled

Every employee (including casual andtemporary employees, excluding

apprentices engaged under the apprentice

act) whether employed directly or through

a contractor, who is in receipt of wages

upto Rs 10000 pm (excluding

remuneration of OT work)


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Definitions

Refer ESI Act


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Administrative Authority

The provisions of the ESI Act are

administered by the central and the state

govts. Establishments controlled by the

central govt, major ports and oil fields arelooked after by the central govt whereas

the other establishments are controlled by

the state governments. The central govt isthe main rule making authority.


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Powers of ESI Corporation

To promote measures for the improvement ofthe health & welfare of insured employees andfor the rehabilitation and reemployment of thosewho have been disabled or injured.

To acquire, hold, sell or otherwise transfer anymovable and immovable property, invest anymoney, take and discharge any loans.

To appoint inspectors for the purpose of the at

To determine the amount of contribution payable

in respect of employees of a factory orestablishment which has not furnished ormaintained by particulars, registers and records.


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Standing committee

The SC is the executive body of the ESICconstituted from among the members ofthe corporation

Subject to the general superintendenceand control of the corporation. The SCshall administer the affairs of thecorporation and may exercise the powersand perform the functions of thecorporation


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Medical benefit councilThe MC is constituted

To advice the corpn and the SC on mattersrelated to the administration of medical benefit,the certification for purposes of the grant ofbenefits and other connected matters.

To exercise such powers and duties ofinvestigation as may be prescribed in relation tocomplaints against medical practitioners inconnection with medical treatment and

attendance Tp perform such other duties in connection withmedical treatment and attendance as may bespecified in the regulation.

R i l B d L l


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Regional Boards, Local

committees, Regional and Medical

Benefit Councils

The ESIC has constituted the above to

execute some of its powers and functionsin their areas.


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Registration of establishment The employer should get the factory or

establishment registered with ESIC (at theappropriate Regional Office) within 15 days ofthe applicability of the ESI Act.

The declaration of the registration is to be filled

in Form 01, along with a separate sheetcontaining the details of establishment andemployees

After having been satisfied about the appilcation,

the RO will allot a code number to the enployerwhich must be quoted on all documents andcorrespondence.


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Registration of employees All the employees entitled to the benefits are

required to be insured in the prescribed manner. The employer should determine the employees

who are covered under the scheme and thenobtain a declaration from each of them in Form

1(which includes the Temporary IdentificationCertificate (TIC))

The employer shall then send a return ofdeclaration forms in Form 3, in duplicate, within

10 days from the date on which the declarationforms are submitted along with the declarationform to the RO.

The return in Form 3 is prepared separately formale and female employees


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Every such employee shall be allotted an

Insurance number. the TIC with theinsurance number marked thereon shall

be detached and returned to the employer

along with a copy of Form 3. The employershould deliver the TIC to the respective

employee and enter the insurance number

in the Register of employees and Return

of contribution.


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Identity Cards

Every employee shall be provided with ID

card who have been in employment for at

least 3 months

If any employee leaves service, before 3

months employees ID card and

Temporary Identification Certificate should

be returned to the RO.


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Deduction

The employer may deduct the employeescontribution from his wages in respect of theperiod for which the contribution is payable.

No deduction shall be made from the wages ofany employee, for the employers contributionpaid or payable in respect of him

The employer shall not reduce wages or

discontinue or reduce any benefits conferredunder the conditions of services payable to anemployee, on account of his liability for thecontributions payable.


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Time and mode of deposit The contribution amount should be paid into an

ESI a/c with the authorised SBI branch through

an ESI challan (in quadruplet) on or before 21st

of the succeeding month.

Interest @ 12 % in respect of delayed payment The ESIC has introduced a new system of

advance payment of ESI contribution by

employers (will not entitled to get any interest)


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Contribution period and Benefit

period

The period during which

an employee is entitled to

or avails of a benefit, is

called the benefit period.

The amount of benefit iscalculated with respect to

the contributions paid

during the corresponding

contribution period.

Contr. Perd Benifit perd

1st Apr-30th

Sep

1st Jan -

30th June

1st Oct

31st Mar

1st Jul

31st Dec

The benefit available under ESIC are linked to Standard Benefit

Rate (SBR) which is in turn linked to the average daily wages of the

employee.


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Sickness Benefit

Entitled for this benefit occurring duringbenefit period and certified by a dulyappointed medical practioner. (atleast 78

days of contribution in the correspondingcontribution period).

The benefit payable would be 20 % morethan the SBR

The benefit is not payable for leaves,holiday or strike


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No sickness benefit shall be payable forthe first 2 days of sickness following at aninterval of not more than 15 days, after the

sickness in respect of which sicknessbenefits were last paid.

Further no sickness benefits shall bepayable to any personfor more than 91days in any two consecutive benefitperiods

1the employees state insurance act, 1948

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