statutory benefits

8/2/2019 Statutory Benefits

1/18

Legally required benefits


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Article 38: To promote the welfare of the peopleby securing and protecting as it may social order social, economic and political justice

Article 39: Policy towards securing health and

strength of workers, men and women, and thetender age of children are not abused and are notforced by economic necessity to entr avocationsunsuited to their age or strength

Article 41: secure just and humane conditions ofwork and maternity relief


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Article 43: secure all workers a living wage,conditions of work ensuring a decentstandard of life and full enjoyment of leisureand social and cultural opportunities

Article 47: Raise the standard of living


4/18

Workmens compensation Act, 1923 Employees State Insurance Act, 1948

Employees Provident Fund and Miscellaneous

Provisions Act, 1952 Maternity Nbenefit Act, 1961

Payment of Gratuity Act, 1972

The Pension Ordinance, 1995 (amended in

1996)


5/18

Compensation to workers/their survivors incases of industrial accident and occupationaldiseases resulting in disablement or death

Death: 50% of monthly wages * relevantamount/Rs. 80,000/-

Permanent total disablement = 60% ofmonthly wages*relevant factor or

Rs.90,000/-


6/18

Jointly run by central & state govt. Provide health care and cash benefits in case

of maternity, sickness, employment injury

Also applicable to non-seasonal employment Private sector exempted in case where similar

benefits are better than those under the ESIscheme

Operated in 27 states/union territories


7/18

Financed by contributions from employersand employees

Employers share- 4.75%

Employee share- 1.75% Companies like L&T, Bajaj Auto, VIP

extended medical benefits beyond the ESIscheme


8/18

Applicalbe to 177 industries/classes ofestablishments employing 20 or moreworkers

Wage ceiling for coverage = Rs.6,500 permonth

Benefits incled PF, deposit linked insuranceand pension to workers and their families


9/18

Administered by EPF organisation (trustees &committees)

Employers EPF contribution = 12% of pay andDA

Employers Deposit linked insurancecontribution = 0.5 % of pay (basic-DA-Cashvalue of food concession allowance)

Employers contribution toward pension fund= 8.33% of pay


10/18

Corpus created will be paid toward deathafter retirement/superannuation/permanenttotal disablement, children pension andorphan pension

Superannuation pension payable on attainingthe age of 58 yrs and on completion of 20full complete years of service or more

Non-entitlement of pension for less than10yrs of service, lump sum withdrawalbenefit paid


11/18

Regulates employment of women before andafter childbirth

Provides 12 weeks maternity leave, medicalbonus etc

Not applicable to those covered under the ESIAct, 1948


12/18

Payment of gratuity @ half months wages forevery completed year of service

Maximum amount payable = Rs.3.5 lakh(w.e.f: 24th sep, 1997)

Maximum payable amount= Rs. 10 lakh (w.e.f1st Jan,2006)

No wage ceiling


13/18

Job and income security for workers iscovered

Retrenchment, closure or lay-off requiresnotice, consultation, compensation and prioradmin clearance from competent authority


14/18

Guarantees minimum wages

Guarantees payment in stipulated time Payment of compensation in the event of

retrenchment


15/18

Contributions to medical care Compulsory disclosure of information by

management reg. the hazards of chemicals toworkers, local public and factory inspector

Preparation of emergency plans by employers

Periodic health checkups

Work environment standards

Complete list of threshold limit values andshort-term exposure limits


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Contributions for medical care Reimbursement for hospitalisation (usually

not exceeding 1 lakh in the whole tenure ofemployment)

Progressive increase in medicalreimbursement

Full reimbursement

Reimbursement for medical care relatedtravel (patient & escort)

Free medical checkups


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financial ceilings

Permissible to self, spouse and only twounmarried children up to 21 yrs of age

65% of actual cost

Requires chemist bills accompanied bydoctors prescription


18/18

To those who retire on being declaremedically unfit

To those who opt voluntary retirementscheme

To superannuated employees

statutory benefits

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