the ESI act 1948 is an act to provide benefits in case of sickness, maternity and employment injury and to make provisions for related matters.

1. By:-SUMAN KUMARI
Msw 3rd sem.
Department of social work
institute of social sciences
Dr. B.R. Ambedkar
university,Agra.
Guided by:- Prof. DR. R. K.
BHARTI

2. MISSION:-
“An act to provide for certain benefits to employees in case of
sickness , maternity and employment injury and to make
provisions for related matters”
ESI Scheme of India, is a multidimensional social security
system tailored to provide socio-economic protection to
worker population and their dependants covered under
the scheme.

3. The ESI Act came into force from 19th april 1948 .
The scheme was first inaugrated in kanpur on 24th
feb. 1952 and the services were launched in
simultaneously in delhi with the initial coverage
for both the centers was 120000 employees.
So, 24 february is celebrated as ESIC day.
The main amendments in the act were in 1952,
1966, 1975, 1984, 1989, 2010.
This act is applied in organised sector.

4.  THE Act extends to whole of India.
 The Act is applicable to other than seasonal factories and
this act has been extended to shops , hotels, restaurants,
private medical and educational institutions, cinemas,
newspapers establishments where 10 or more workers are
working.(it is 20 or more persons in some states.)
 The wage limit for coverage under the act is upto Rs. 21000
p.m. (w.e.f. 1.10.2016) and 25000 p.m. for a disable person.
 Employees in receipt of a daily average wage upto Rs. 137 are
exempted from the payment of contribution.

5. 1.75% of
employee’s
contribution
4.75% of
employer’s
contribution
6.5% in
employees’
state
insurance
fund
From october 2016, in case where the ESI is implemented for the first time,
the contribution rate is 1% of wages of employee and 3% payable by
employer for 2 years or 24 months.

6. CONTRIBUTION
PERIOD
1 april to 30th
september
1 october to 31st
march
CASH BENEFIT
PERIOD
1 january to 30th
june (of the
following year)
1 july to 31st
december

7. A-EMPLOYEES’ STATE
INSURANCE
CORPORATION(ESIC)
B-STANDING
COMMITTEE
C-MEDICAL BENEFIT
COUNCIL

8.  ESIC is responsible for coordinated policy
planning and decision making for growth,
development and efficacy of the ESI scheme.

9.  State/union territories covered 33
 No. of employees 29321060
 No. of insured person /family units 31962910
 No. of factories covered 898138
 Total beneficiaries 124016091
 Branch offices/pay offices 630/185
INFRASTRUCTURE-
 ESI hospitals 151
 ESI dispensaries/ISM units 1489/174

10. Following benefits are provided under sec.46-
Medical benefits
Sickness benefits
Maternity benefits
Disablement benefits
Dependants’ benefit
Funeral expenses
There are some other schemes for the welfare of an
IP:-
RAJIV GANDHI SHRAMIK KALYAN YOJNA
Vocational rehabilitation etc.

11.  Eligibility :-reasonable medical care for self and
family from day one of entering insurable
employment.
 Duration :-till he or she remains in insurable
employment.
 There is no ceiling on expenditure on the
treatment of an insured person.
 The state govt. as per the provisions of the act
contribute 1/8 of the of benefit within a per capita
ceiling of Rs. 1500 per insured person p.a.

12.  Eligibility :-payment of contribution for 78 days in
corresponding contribution period.
 Duration:- upto 91 days in 2 consecutive period.
 Rate:-70% of average daily wages.
there are two types of sickness benefits;-
1. Extended sickness benefit:-
 Eligibility:- for 34 specified long term diseases, continue
insurable for 2 years with minimum 156 days in 4
consecutive period.
 Duration:-124 days during a period of two years. This
may be extended upto two years on medical advice.
 Rate:-80%of daily average wages.

13. 2.Enhanced sickness benefit:-
 Eligibility:-payment of contribution for 78 days in
corresponding contribution period.
 Duration:-14 days for tubectomy and 7 days for
vasectomy, extendable on medical advice.
 Rate:-100% of average daily wages.
 Eligibility:-from day one of entering insurable
employment in case of death due to employment injury.
 Duration:-for life to the widow or untill her re-
marriage.to dependant children till the age of 25.to
dependant parent till death etc. subject to conditions.
 Rate:-90%of the average daily wages shareable in fixed
proportion among all dependants.
Dependants’ benefit

14.  Eligibility:-payment of contribution of 70 days in two
corresponding periods.
 Duration:-upto 26 weeks in case of confinement,upto
6 weeks in case of miscarriage, upto 12 weeks in case of
commissioning or adoptive mother or the woman
having 2 or more survival child and upto 4 weeks or 1
month for sickness arising out of pregnancy.
 Rate:-100% of the average daily wages
 There is also a provision of medical bonus in case of
insured person or the wife of and insured person does
not avail medical facility from an ESI hospital at the
time of delivery. The amount of bonus is rs. 5000 for
two deliveries only.

15. 1. Temporary disablement benefit:-
 Eligibility:-from one day of entering insurable
employment for disablement due to employment injury.
 Duration:- as long as temporary disablement lasts.
 Rate:-90%of the average daily wages.
2.Permanent disablement benefit:-
 Eligibility:-from one day of entering insurable
employment for disablement due to employment injury.
 Duration:-for whole life.
 Rate:-for permanent total disablement 90% of average
daily wages .for permanent partial disablement
proportionate to the loss of earning capacity as
determined by medical board.

16.  Eligibility:-from one day of entering insurable
employment.
 Duration:- for defraying expenses on the funeral of an
insured person.
 Rate:-actual expenses subject to a maximum of Rs.
10000.

17.  Eligibility:-in case of involuntary loss of employment
due to closure of factory, retrenchment or permanent
invalidity due to non employment injury and the
contribution in respect of him have been paid/payable for
a minimum of 3 yrs. Prior to the loss of employment.
 Duration:-minimum 12 month during lifetime.
 Rate:-50% of average daily wages.
 Eligibility:-same as above.
 Duration:-for a duration of maximum 6 months.
Skill up gradation training under RGSKY

18.  For false statement or false representation:-imprisonment for a term
which may extend to 6 months or fine not exceeding Rs. 2000 or both.
 If an employer fails to pay contribution which has been deducted by
him, he shall be punishable for not less than 1 year and shall also be
liable to fine of Rs. 10000.
 In other cases:-imprisonment shall not be less than 6 months and fine
of Rs. 5000.
 If an employer:-
A. Attempts to deduct or deducts from the wages of an employee
B. Reduces the wages of any privileges or benefit
C. Dismisses, discharge, reduces or punishes an employee
D. Fails or refuse to submit any return or make a false return
E. Obstruct any inspector
F. In guilty of any contravention
he shall be punishable with imprisonment for a term which may extend
to 1 year or with a fine which may extend to Rs. 4000 or both.

20.  All Insured Persons will be issued with two magnetic cards,
one for the Insured persons & the other for family
members
 Insured Persons and their family members can avail
treatment in any ESI Hospital or dispensary across India.
 Biometric details (finger prints) to verify and authenticate
Insured Persons and their families through card swipe.
 Employers can submit their Return of Contribution online
 Employers can collect information on employees’ benefit
availed by respective employees online.
 One time registration. Employees will carry forward with
same set of cards every time they change employment.
 Duplication of enrolment can be avoided.