The Employee State Insurance Act, 1948


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


APPLICABILITY

The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.

All Establishment covered under the Shops & Establishment Act employing 20 or more.

ELIGIBILITY

Every employee drawing Salary/wages up to Rs. 15000.00 per month are covered under the provisions under the Act.

BENEFITS TO EMPLOYEES

Sickness Benefit
Maternity Benefit
Medical Benefit
Disablement Benefit
Dependents Benefit
Funeral Expenses

RATE OF CONTRIBUTION

Employee State Insurance Corporation (ESIC) is deducted on gross salary which is 1.75% from the employee contribution & 4.75% from the employer contribution.

CONTRIBUTION PERIOD

There are two contribution periods each of 6 months durations and two corresponding benefit periods also of 6 months duration as under.

Contribution Period Corresponding Period
1st April to 30th September 1st January to 30th June of the following year
1st October to 31st March 1st July to 31st December of the following year
PENALTY

The ESI Act contains adequate provisions to persons for violating its provisions. Different punishment have been prescribed for different types of offences