Employee's state insurance act, 1948

summery,benefits,contribution penalty

1. EMPLOYEE’s STATE INSURANCE ACT,1948 RUBY DHAKED MSW 3 rd Sem. Roll No. 31 SUBMITTED TO: DR.R K BHARTI DEPARTMENT OF SOCIAL WORK I.S.S.

2. 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”.

3. 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 .

4. 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/-

5. 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.

6. “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;

7. “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;

8. 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;

9. 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.

10. 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.

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

12. 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

13. 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.

14. 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.

15. 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 .

16. 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.

17. 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 .

18. 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.

19. 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.

20. 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.

21. THANKS..