The employees’ state insurance act, 1948

1. Submitted To Submitted By
Dr. R.K.Bharti Swati Rajput
Roll No-38
M.S.W 3rd Sem
DEPARTMENT OF SOCIAL WORK
DR. BHIMRAO AMBEDKAR UNIVERSITY, AGRA
*

2. *
*WHAT IS ESI ACT?
*Applicability Of This Act
*Contribution
*Contribution & Benefit Period
*Benefits
*Rajiv Gandhi Shramik Kalyan Yojana
*Benefits To Employers

3. *
*Parliament has enacted a number of legislations in the
area of social security for the workers.
*The Employees’ State Insurance Act was promulgated by
the Parliament of India in the year1948.
*It was the first major legislation on Social Security in
independent India.
*It provides Social Security in the form of Social
Insurance.
*Came into effect in the year 1952, 24th February at
Kanpur.
*It is an Act to provide certain benefits to Employees in
case of – Sickness , Maternity , Employment Injury ,and
Certain other matters.

4. *
*1. Factory: – Having 10 or more persons working and
manufacturing activity is being carried out. Coverage done
as per Sec 2(12) of Act.
*2. Establishment: – Having 10 or more employees working
and coverage done as per Sec 1 (5) of the Act. Examples
(shops, Hotels, Restaurants etc.)
*3. Further under section 1(5) of the Act, the scheme has
been extended to private Medical and Educational
Institutions employing 10 or more persons in certain
states/UTs.
*4. existing wage-limit for coverage under the act is Rs.
21,000/- per month (w.e.f:- 01/01/2017)
*5. As per Sec 1(6) of the Act, once a factory/
establishment is covered, it will remain covered even if
the employee strength falls below the required limit.

5. AREAS COVERED
*The ESI Act is applicable across the length and
breadth of India. The ESI scheme is now notified
in 526 Districts in 34 states and Union Territories
which includes 346 complete Districts, 95
Districts Headquarters and in 85 Districts.

6. *
*RATE OF CONTRIBUTION
*Employee share : 1.75%
*Employer share : 4.75%
*In newly implemented areas for
the initial 2 years rate of
contribution will be:
*Employee share : 1%
*Employer share : 3%

7. *
Contribution Period Benefit Period
1st April to 30th Sep. 1st Jan to 30th June
1st Oct to 31st March 1st July to 31st Dec.

8. *
* Medical Benefits
* Sickness Benefits
* Disablement Benefits
* Dependents Benefits
* Maternity Benefits
*Other Benefits…
Unemployment Allowance (RGSKY)
Confinement Expenses
Funeral Expenses
Vocational Training
Rehabilitation Expenses

9. *
*The ESI Scheme provides full range of
Medical Care to all Insured person and
their family, through a network of ESI
Dispensaries, Hospitals & Panel Clinics,
Diagnostic Centers & Super Specialty.
Super-specialty treatment such as- Open
Heart Surgery, Bone Marrow Transplant,
Kidney Transplant or specialized
investigations like CAT scan, MRI,
Angiography etc.

10. *
*Sickness Benefits represents periodical cash payments made to
an IP during the period of certified sickness occurring in a
benefit period when IP requires medical treatment and
attendance with abstention from work on medical grounds
Eligibility for SB Minimum 78 days contribution in one
contribution period The daily rate of Sickness Benefit is 70 % of
the daily wages .
*Extended Sickness Benefit- SB extendable up to two years in the
case of 34 malignant and long-term diseases at an enhanced
rate of 80% of wages.
*Enhanced SB – ESB equal to full wage is payable IP undergoing
sterilization for 7 days/ 14 days for Male & Female workers
respectively.

11. *
*Maternity Benefit consists of periodical cash
payments in case of confinement or
miscarriage or sickness arising out of
pregnancy, confinement, premature birth of
child or miscarriage, to an insured woman as
certified by a duly appointed medical officer
or mid wife.
* Maternity Benefit is payable for 26 weeks,
which is extendable by further one month on
medical advice at the rate of full wage
subject to contribution for 70 days in the
preceding two Contribution Periods.

12. *
*Disablement Benefit is admissible for
disablement caused by employment injury. At
the first instance, temporary disablement
benefit is payable as long as the temporary
disability lasts. If the employment injury
results in partial or total/permanent
disability, permanent disablement benefit is
payable till the death of the insured person
The Daily benefit rate for Permanent and
Temporary Disablement is roughly equivalent
to about 90 % of the wage rate.

13. *
Dependents benefit is paid as family pension to the
dependents of a deceased insured person in the
event of death due to employment injury or
occupational disease and is equivalent to about 90%
of the wages . Eligible Members: A widow can
receive this benefit on monthly basis for life or till
her Re-Marriage A son or daughter can receive this
benefit till (25) twenty five years of age. Other
dependents like parents including a widowed
mother etc. can also receive this benefit under
certain conditions The first installment is payable
within a maximum of three months following the
death of an insured person.

14. *
Funeral Expenses
*An amount of Rs.10,000/- is payable to the
dependent or to the person who performs last rites
from day one of entering insurable employment.
Confinement Expenses
*An Insured Women or an I.P in respect of his wife
in case confinement occurs at a place where
necessary medical facilities under ESI Scheme are
not available.

15. *Rajiv Gandhi Shramik Kalyan Yojana
*This scheme of unemployment allowances was
introduced w.e.f.01-04-2005.
*Unemployment allowance equal to 50% of wages for
a maximum period of upto two years.
*An insured person who become unemployed after
being insured three or more years, due to closure of
factory /establishment , retrenchment or permanent
invalidity .

16. *
1. Exemption form the applicability of
Workmen’s Compensation Act,1923.
2. Exemption from Maternity Benefit Act, 1961.
3. Exemption from payment of medical
allowance to employees and their
dependent’s or arranging for their medical
care.
4. Rebate under the Income Tax Act on
contribution deposited in the ESI account.

17. *