Applicability of
ESIC
Under Section 2(12) the Act is applicable to non-seasonal factories
employing 10 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops,
hotels, restaurants, cinemas including preview theatres, road-motor
transport undertakings and newspaper establishments employing 20* or
more persons.
Further under section 1(5) of the Act, the Scheme has been extended to
Private Medical and Educational institutions employing 20* or more
persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for
coverage of shops and other establishments from 20 to 10 or more
persons. Remaining State Governments/UTs are in the process of reducing
the same.
The existing wage limit for coverage under the Act is Rs. 15,000/- per
month ( w.e.f. 01/05/2010).
Areas Covered
The ESI Scheme is being implemented area-wise by stages. The Scheme has
already been implemented in different areas in the following
States/Union Territories
States
All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal
Pradesh and Mizoram.
Union Territories
Delhi, Chandigarh and Pondicherry
E.S.I. Contribution
E.S.I. Scheme being contributory in nature, all the employees in the
factories or establishments to which the Act applies shall be insured in
a manner provided by the Act. The contribution payable to the
Corporation in respect of an employee shall comprise of employer's
contribution and employee's contribution at a specified rate. The rates
are revised from time to time. Currently, the employee's contribution
rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer's is
4.75% of the wages paid/payable in respect of the employees in every
wage period. Employees in receipt of a daily average wage upto Rs.100/-
are exempted from payment of contribution. Employers will however
contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every
employee and deduct employees contribution from wages bill and shall pay
these contributions at the above specified rates to the Corporation
within 21 dayss of the last day of the Calendar month in which the
contributions fall due. The Corporation has authorized designated
branches of the State Bank of India and some other banks to receive the
payments on its behalf.
Benefits of E.S.I. Scheme
The section 46 of the Act envisages following six social security
benefits :-
Medical Benefit
Full medical care is provided to an Insured person and his family
members from the day he enters insurable employment. There is no ceiling
on expenditure on the treatment of an Insured Person or his family
member. Medical care is also provided to retired and permanently
disabled insured persons and their spouses on payment of a token annual
premium of Rs.120/- .
Sickness Benefit (SB)
Sickness Benefit in the form of cash compensation at the rate of 70
per cent of wages is payable to insured workers during the periods of
certified sickness for a maximum of 91 dayss in a year. In order to
qualify for sickness benefit the insured worker is required to
contribute for 78 days in a contribution period of 6 months.
Extended Sickness Benefit (ESB)
SB extendable upto two years in the case of 34 malignant and
long-term diseases at an enhanced rate of 80 per cent of wages.
Enhanced Sickness Benefit
Enhanced Sickness Benefit equal to full wage is payable to insured
persons undergoing sterilization for 7 days/14 days for male and female
workers respectively.
Maternity Benefit (MB)
Maternity Benefit for confinement/pregnancy is payable for three
months, which is extendable by further one month on medical advice at
the rate of full wage subject to contribution for 70 days in the
preceding year
Disablement Benefit
Temporary disablement benefit (TDB)
From day one of entering insurable employment & irrespective of
having paid any contribution in case of employment injury. Temporary
Disablement Benefit at the rate of 90% of wage is payable so long as
disability continues.
Permanent disablement benefit (PDB)
The benefit is paid at the rate of 90% of wage in the form of
monthly payment depending upon the extent of loss of earning capacity as
certified by a Medical Board
Dependants' Benefit (DB)
DB paid at the rate of 90% of wage in the form of monthly payment to
the dependants of a deceased Insured person in cases where death occurs
due to employment injury or occupational hazards.
Other Benefits
Funeral Expenses
An amount of Rs.10,000/- is payable to the dependents or to the
person who performs last rites from day one of entering insurable
employment.
Confinement Expenses
An Insured Women or an I.P. in respect of his wife in case
confinement occurs at a place where necessary medical facilities under
ESI Scheme are not available.
In addition, the scheme also provides some other need based benefits to
insured workers.
Vocational Rehabilitation
To permanently disabled Insured Person for undergoing VR Training at
VRS.
Physical Rehabilitation
In case of physical disablement due to employment injury.
Old Age Medical Care
For Insured Person retiring on attaining the age of superannuation
or under VRS/ERS and person having to leave service due to permanent
disability insured person & spouse on payment of Rs. 120/- per annum.
Rajiv Gandhi Shramik Kalyan Yojana
This scheme of Unemployment allowance was introduced w.e.f.
01-04-2005. An Insured Person who become unemployed after being insured
three 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/travelling
allowance borne by ESIC.
An interesting feature of the ESI Scheme is that the contributions are
related to the paying capacity as a fixed percentage of the workers
wages, whereas, they are provided social security benefits according to
individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Branch
Offices (BOs) / Pay Offices (POs), subject to certain contributory
conditions.
We have specially trained staff to handle the entire ESIC work you may
entrust this burden on us and feel free to focus your attention to
enhance your business or profession.
To know more details and avail services , please e-mail to
contact@businesswonder.com.