The document provides an overview of the Employee's State Insurance Act (ESI Act) in India. Some key points: - The ESI Act aims to provide medical care and other benefits to employees in factories and establishments. It covers employees and their families. - It applies to factories with 10+ employees and certain other establishments like shops, restaurants with 20+ employees. - Contributions are made by both employers (4.75% of wages) and employees (1.75% of wages). - Benefits include medical care, sickness benefit, maternity benefit, dependents' benefit, disablement benefit and funeral expenses. - Medical benefits are provided from day one of employment.

1. RUBY DHAKED
MSW 3rd Sem.
Roll No. 31
SUBMITTED TO: DR.R K BHARTI
DEPARTMENT OF SOCIAL WORK
I.S.S.

3. INTRODUCTION
“THE Employee’s state insurance act (ESI) is
social security and welfare scheme aimed to
providing Medical care and others related
benefits to the employees working in various
factories and establishment. ESI act as a
medical insurance covered to employees and
his immediate family members”.

4. APPLICABILITY
 It extends to the whole of India.
 Under sec.2(12) this act is applicable to the
factories employing 10 or more persons
irrespective of whether power is used in the
process of manufacturing or not.
 Under sec.1(5) of act ,the scheme has been
extends to shop , hostels, restaurants, cinemas
including preview theatre establishment
employing 20 more persons .

5.  Under sec 1(5) of this act, the scheme has been
extend to private medical institution and
educational institutions employing 20 or more
persons in certain states.
 The existing wage limit for coverage the act is RS.
21,000/-

6. DEFINITION
 “APPROPRIATE GOVERNMENT” means in respect of
establishment under the control of the central
government or [a railway administration] or a major
port or a mine or oilfield the central government and
in all other cases the state government.
 “CONFINEMENT’’ means lab our resulting in the
issues of a living child or lab our after 26 weeks of
pregnancy resulting in the issues of child whether alive
or dead.

7.  “CONTRIBUTION” means the sum of money payable
to the corporation by the principal employer in respect
of an employee and includes any amount payable by or
on behalf of the employee in accordance with the
provisions of this act;
 “DULY APPOINTED” means appointed in accordance
with the provisions of this act or with the rules or
regulation made there under;

8.  “EMPLOYMENT INJURY” means a personal injury to
an employee caused by accident or an occupational
disease arising out of and in the course of his
employment being an insurable employment.
Whether the accident within or outside the territorial
limits of India;

9. ESI- CORPORATION
 The corporation shall be consist of the following members namely:
 A chairman, vice-chairman to be appointed by the central govt. Not more
than 5 persons to be appointed by the central government.
 One person each representing each of the state in which this act is in force
to be appointed by state government.
 One person to be appointed by central government to represent the union
territories.
 10 persons representing employers.
 10 persons representing employees.
 2 persons representing the medical profession.
 3 members of parliament of whom 2 shall be members of the house of
people (Lok-sabha) and 1 shall be a member of the council of states (Rajya-
sabha) elected respectively by the members of the house of the people and
the members of council of states;

10. FINANCE AND AUDIT
 EMPLOYEES’ STATE INSURANCE FUND :(1) All
contributions paid under this act and all other moneys
received on behalf of the corporation shall be paid into a
fund called the Employees’ state insurance fund which
shall be held an administered by the corporation for the
purposes of this act.
 (2)The corporation may accept grants, donations and gifts
from the central or any state government , local authority
or any individual or body whether incorporated or not , all
or any of the purposes of this act.

12. CONTRIBUTION
 The ESI scheme is financed and function largely
through contribution from employers and employees.
 The rate of contribution by employer is 4.75% of the
wages payable to employees . The employees
contribution is the rate of 1.75% of the wages payable
to an employee. The state government also share part
of the expenditure of the provisions of medical care.
Total contribution is 6.5% of gross salary.

13. CONTRIBUTION PERIOD BENEFIT
PERIOD
CONTRIBUTION PERIOD BENEFIT PERIOD
o 1st APRIL to 30 SEPTEMBER
o 1st October to 31st march
o 1st JANUARY to 30th JUNE
o 1ST JULY to 31st DECEMBER

14. BENEFIT OF ESI
 The following benefits are provided under sec. (46)
 MEDICAL BENEFIT
 SICKNESS BENEFIT
 DISABLEMENT BENEFIT
 DEPENDANT’S BENEFIT
 MATERNITY BENEFIT
 FUNERAL EXPENSES
 OTHER BENEFIT

15. MEDICAL BENEFIT
From day one of entering insurable employment for
self and dependants such as spouse , parents and
children own or adopted.
For self and spouse on superannuation or incase of
having suffered permanent physical disablement
during the course of insurable employment.

16. SICKNESS BENEFIT
Under the scheme the IP is entitled to sickness benefit
for 91 days in year to extant of 70% of his wage.
The is extended up to 2 years in case of chronic illness
and rate of payment of benefit is 80% of his wages.
For this benefit the IP is required to have contributed
to the scheme at least for 78 days in 6 month
contribution period.

17. MATRENITY BENEFIT
 The scheme provides for payment of maternity benefit
equal to full wages for 12 weeks plus additional 1
month in case of illness arising out of pregnancy
delivery etc.
 The insure woman is required to have contributed for
70 days in proceeding two contribution periods for
entitlement to maternity benefit .

18. DEPENDANT BENEFIT
 In case of death due to employment injury the family
is entitled to payment of dependant benefit at the rate
about 90% of his wages.
 There is no contributory conditions for this benefit.

19. DISABLEMENT BENEFIT
 In the case of disablement due to employment injury
including occupational disease the IP is entitled to
payment of periodical benefit at about 90% of his
wage during the period the IP abstain from work for
treatment .
 There is no contributory condition for this benefit .
 After the treatment is over , if there is any decide the
daily rate of compensation as per percentage of the
full rate .

20. FUNERAL EXPENSES
 In the case of death of IP a sum of RS. 10,000 is
payable to the dependant or to the person who
performs last rites from day one of entering insurable
employment.
 OTHER BENEFIT : Other benefit are include like
rehabilitation free supply of physical aids and
appliances revenues health care and medical bonus.

21. PENALTIES
Punishment for false statement : In this case any false
statement or representation shall be punishable with
imprisonment for a term which may extend to 6
months up to RS. 2000/ or with both.
Punishment for failure to pay contribution: If any
persons fails to pay any contribution which under to
this act he is liable to pay. He shall be punishable with
imprisonment up to 3 years .
Power to recover damage :If employer fails to pay the
amount of contribution then corporation may recover
from the employer by the way of penalty.

22.  Power of court to make orders: If court makes the
order for employer – if employer is not to make this
order within period than employer shall be punishable
with imprisonment in respect thereof under sec. 85
shall also be liable to pay fine up to RS.1000 for every
day.

23. THANKS..