Employees’ State Insurance ACT, 1948


Applicability

All factories excluding seasonal factories employing 10 or more persons and working with power.

All factories excluding seasonal factories employing 20 or more persons and working without power.

Any establishment which the Government may specifically notify as being covered.

Shop Employing 20 or more persons.

 

Note : As soon as the above conditions are fulfilled the employer should furnish the details in Form -01 to ESI office for registration under the ESI Act, 1948 & Obtaining of the employer’s Code No.

Eligibility

Any person employed for wages (upto Rs. 10000) a month, excluding remuneration for overtime work in or in connection with the work of a factory or establishment;

Any person who is directly employed by the employer in a factory or through his agent on work which is ordinarily part of the work of the  factory of incidental to purpose of the factory.

Any person who is classified as disabled employee and working in the private sector, with monthly wages upto Rs . 25, 000/- Per month provided they are appointed on or after 01.04.2008.

Benefits

Free medical treatment is offered to covered employees at hospital and dispensaries run by the ESI Corporation.

About 7/12th of employees normal wage will be payable to him by ESI during sickness.

Maternity benefit for 12 weeks of which not more than 6 weeks should be precedingconfinement.

Injury during/in course of employment resulting in temporary/permanent disablement entitles the covered employee to a regular payment to substitute his lost wages.

Death during course of employment entities specified dependents to a regular payment.

 

One time payment of Rs. 3,000 to help meet funeral expenses.

Rajiv Gandhi Shramik Kalyan Yojna (Unemployment to the IpS who have been rendered unemployed involuntarily due to closure of factory / establishment/ retrenchment or permanent disablement).

Vocational Rehabilitation Scheme (applicable to IPs in whose case loss of earning capacity resulting from employment injury. Assessed as not less than 40 %

Insured person can avail cashless treatment in the hospitals referred by ESI Hospital.

 

Penal Provision for non- Payment

For employees’ contribution : Imprisonment for 2yrs. To max. 5yrs. And/ or fine of Rs. 25,000/-

For employer’s contribution : Imprisonment for 6 mths.to max 3 yrs. And /or fine of Rs. 10,000/-