employee state insurance act 1948 ppt

Monday, April 10, 2023 1

OBJECTIVE

• The objective of the act is to secure sickness, maternity, disablement and medical benefits to employees of factories and establishment and dependents benefits to the dependents of such employees.


APPLICABILITY

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

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

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

Shop employing 20 or more persons.


ELIGIBILITY

Any person employed for wages (up to Rs. 6,500) in or in connection with the work of a factory or establishment end.

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 or incidental to purpose of the factory.


CONTRIBUTION AND BENEFIT PERIOD

• Employees covered under the ESI Act, are required to pay contribution towards the scheme on a monthly basis. A contribution period means a six month time span from 1st April to 30th September and 1st October to 31st March.

• Cash benefits under the scheme are generally liked with contributions paid. The benefit period starts three months after the closure of a contribution period. The two type of periods are elucidated below.

Contribution Period Benefit Period 1st April to 30th September 1st January to 30th June of the following year 1st October to 31st March 1st July to 31st Dec. Monday, April 10, 2023 5

CONTRIBUTION UNDER THE ACT

• Employees: 1.75% on total monthly wages

• Employers: 4.75% on total monthly wages


BENEFITS


OTHER BENEFITS

a. Funeral expenses On the death of an insured person subject to a maximum of a Rs.

2,500 payable at the local office.

b. Vocational rehabilitation In case of disabled insured persons under 45 years of age with 40%

or more disablement.

c. Free supply of physical aids and appliances such as crutches, wheelchairs, spectacles and other such physical aids.


d. Preventive health cares services

such family welfare services, HIV/AIDS detection, treatment etc.

e. Medical bonus Rs250

Is paid to an insured woman or in respect of the wife of an insured person in case she does not avail hospital facilities of the scheme for child delivery.


BENEFITS CANNOT BE COMBINED

• An employee is not entitled to receive two benefits at the same time . That means he cannot receive for the same period.



Rajiv Gandhi Shramik Kalyan Yojana -(Unemployment Allowance Scheme)

•Scheme introduced w.e.f. 1-4-05.

•Insured person who becomes unemployed after being insured for 3 or more years, due to closure of factory/ establishment, retrenchment or permanent invalidity are entitled to:-

Unemployment Allowance equal to 50 % of wage for a maximum period of upto one year.Medical care for self and family from ESI Hospitals/dispensaries during the period IP receives unemployment allowance.Vocational Training provided for upgrading skills – Expenditure on fee/ traveling allowance borne by ESIC .



• Employees' in receipt of daily wage upto Rs.70/- exempted from paying their share of contribution w.e.f. 1.8.2007.

• Daily rate of sickness benefit from 50 to 60 % w.e.f. 1.12.2007.

• Daily rate of Disablement and Dependants Benefit enhanced from 70 to 75 % w.e.f. 1.12.2007.

• Reimbursement of Funeral expenses enhanced from Rs.3,000 to Rs.5,000/- w.e.f. 1.9.2009.

employee state insurance act 1948 ppt

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