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EMPLOYEES STATE INSURANCE ACT 1948

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Employees State Insurance Act 1948

Employer and employee contributions are used to fund the ESI Scheme. The employer's contribution is 4.75
percent of the earnings paid to employees. Employees are required to contribute 1.75 percent of their gross
compensation.
• The Employees State Insurance Act 1948 by the Parliament was the first major social security legislation for
workers in India.
• The ESI Act 1948 covers certain health-related incidents the workers are exposed to, such as maternity,
sickness, permanent or temporary disablement, or death due to employment injury, which can result in the
loss of earning capacity.
• The Employees State Insurance Act 1948 functions under the Ministry of Labour & Employment.

What is ESI?
• Employees State Insurance is a self-financed comprehensive social security scheme that comes under
Employees State Insurance Act 1948. The Ministry of Labour & Employment is responsible for the
functioning of this Act.
• Social security provisions made in the ESI Act 1948 protect the employees against financial distress arising
out of events of disablement, sickness, or death due to employment injury.
• Employees State Insurance provides cash compensation for the above cases.
• Employees’ State Insurance Corporation (ESIC) administers Employees State Insurance Act 1948.
• Employees’ State Insurance Corporation (ESIC) is a statutory corporate body that is established under the
employee’s state insurance act in India.
• The Employees' State Insurance Act, 1948, is a social security plan offered by the Indian government.
Employees are covered under the plan if they become disabled or die as a result of work-related injuries,
illnesses, or maternity leave. Employees must enroll in the plan in order to receive medical treatment and
other benefits. The financial aid provided by the scheme may be used to compensate employees for lost
wages due to illness.
• This is a self-financing program in which employees and employers contribute a certain percentage of their
wages to the scheme on a monthly basis.

Constitutionality of the Act

• The ESI Act serves as a constitutional instrument because of its practice of providing insurance and medical
insurance. While the ESI Act is mostly executed through the ESI Corporation, the Central Government takes
control of most of the proceedings.
• This control by the Central Government largely contributes to the constitutionality of the Act, because
Insurance, be it public or private, is listed in the Seventh Schedule of the Indian Constitution as a Union List
subject i.e. it can only be legislated by the Central Government.

Application and scope of the Act

The Employees' State Insurance Act (ESI) of 1948 provides financial support and assistance to the working class
in times of medical difficulty, such as:
• Parental Leave
• Disturbances (mental or physical).
• Disability.
• Death.

• It is a self-funded project that acts as a form of social security program to protect the working class from
financial hardships caused by the medical conditions mentioned above.
• The Act applies to non-seasonal factories employing 10 or more people under Section 2(12).
• The Scheme has been extended to stores, hotels, restaurants, theatres including preview theatres, road-
motor-transport operations, and newspaper establishments that employ 10* or more people under Section
1(5) of the Act.
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• The Scheme has also been extended to private medical and educational institutions employing 10* or more
people in specified States/UTs under section 1(5) of the Act.
• In Maharashtra and Chandigarh, however, the bar for establishment coverage remains at 20 employees.
The current monthly pay ceiling for coverage under the Act is Rs.21,000 (as of January 1, 2017).
• ESI applies to any entity that employs ten or more people, such as non-manufacturing stores, hotels, and
restaurants, cinemas, road motor vehicle establishments, newspaper establishments, and private
educational and medical institutes.
• The ESI Scheme is now operational in 526 districts throughout 34 states and union territories, including 346
complete districts, 95 district headquarters, and 85 districts. The plan is in place in the centers. Arunachal
Pradesh and Lakshadweep have yet to adopt the plan.
Seasonal factory
• Seasonal factory means a factory which is exclusively engaged in one or more of the following manufacturing
processes, namely, cotton ginning, cotton or jute pressing, decortication of ground- nuts, the manufacture
of coffee, indigo, lac, rubber, sugar (including gur) or tea or any manufacturing process which is incidental
to or connected with any of the aforesaid processes and includes a factory which is engaged for a period
not exceeding seven months in a year —
(a) in any process of blending, packing or repacking of tea or coffee ; or
(b) in such other manufacturing process as the Central Government may, by notification in the Official Gazette,
specify ;

Eligibility
To be eligible for the ESI scheme, the employee or the worker's monthly salary should not exceed Rs. 21,000
and Rs. 25,000 for people with disability

Finance
ESI Scheme, like most of the Social Security Schemes the world over, is a self financing health insurance scheme.
Contributions are raised from covered employees and their employers as a fixed percentage of wages. The State
Governments, as per provisions of the Act, contribute 1/8th of the expenditure of medical benefit within a per
capita ceiling of Rs. 1500/- per Insured Person per annum. Any additional expenditure incurred by the State
Governments, over and above the ceiling and not falling within the shareable pool, is borne by the State
Governments concerned.

Benefits
Employees are entitled to benefits under Section 46 of the ESI Act as social security in the event of injury while
on the job. There are six different sorts of advantages available:
• Medical benefit.
• Sickness benefit
• Maternity benefit
• Dependents’ benefits.
• Disability benefits
• Additional benefits.

Medical Benefits
• These benefits are guaranteed to employees as soon as they are hired, and they also apply to their family
members. This benefit pays for any treatment costs incurred by the employee as a result of medical
difficulties.
• From the first day of insurable employment, an insured person and his family receive full medical treatment.
There is no limit on how much an insured person or a family member can spend on treatment. On payment
of a nominal annual premium of Rs.120/-, medical care is also provided to retired and permanently disabled
covered persons and their spouses.

Sickness Benefits
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• Section 46(1)(a) of the ESI Act allows covered employees to receive periodic payments in the event of
sickness, as long as the medical condition is validated by an authorized medical practitioner.
• The compensation is roughly 70% of their salaries, with a maximum of 91 days of compensation each year.
The employee must have worked for a minimum of 78 days over a 6-month term of employment to be
eligible for the benefit.
• Extended Sickness Benefit (ESB): In the case of 34 malignant and long-term conditions, SB can be extended
for up to two years at an enhanced rate of 80% of salaries.
• Enhanced Sickness Benefit: Insured persons undergoing sterilisation for 7 days/14 days for male and female
workers receive an Enhanced Sickness Benefit equal to their full earnings.
Benefits of Maternity
An insured woman can receive periodical payments under Section 46(1)(b) of the ESI Act if any of the following
scenarios occur:
• confinement (in this case, means labour which results in the birth of a living child. It can also mean birth
after 26 weeks of pregnancy, whether the child is living or not.)
• pregnancy-related illness
• childbirth complications
The benefit is payable for three months, with a one-month extension available if needed. In the year preceding
the pregnancy, a minimum of 70 days of employment must be completed.
ESIC provides 100% of average daily wages in cash up to 26 weeks in confinement and 6 week in case of
miscarriage, during maternity leave and 12 weeks for commissioning mother and adopting mother.

MB Act ESI Act

Leave 26 weeks 26 weeks
Remuneration Average daily wages for the period of actual absence, Average daily wages obtained by dividing
which is the average of the wages payable to the the total wages paid during the contribution
woman for the days on which she has worked during period by the number of days for which
the period of three months immediately preceding these wages were paid, rounded to the next
the date from which she absents herself on account higher rupee or 25 Rupees, whichever is
of maternity or Rupees 10, whichever is higher. higher.
Additional (i) Medical Bonus – 3,500 Rupees if no pre-natal Confinement Expense – 5,000 Rupees to
Benefits confinement and post-natal care is provided for by insured woman, provided that the
the employer free of charge; confinement occurs at a place where
(ii) Nursing Breaks; Crèche Facilities; and necessary medical facilities under the ESI
(iii) Four visits a day to the crèche, including the Scheme are not available, subject to a
interval for rest. maximum of two confinements.

Agreement or Section 27 of the MB Act provides that where under

contract of any award, agreement, contract of service or
Service to otherwise, a woman is entitled to benefits in respect
override in of any matter which are more favourable to her than
certain those which she would be entitled under the MB Act,
circumstances the woman shall continue to be entitled to the more
favourable benefits than those provided by the MB
Act.

Option to Choose Coverage under the MB Act and not the ESI Act
• Section 61 of ESI Act provides that when a person is entitled to any of the benefits provided by the ESI Act,
then such a person is not entitled to receive any similar benefits admissible under the provisions of any
other enactment. Therefore, it becomes clear that a woman employee does not have the right/option to
choose to be covered under the MB Act, when the ESI Act is applicable to her.
Right to Claim Additional Benefits under MB Act or MB Amendment Act
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• In view of the above, legally, the employers are not mandated to extend the additional benefits (specified
under the MB Act and/or MB Amendment Act) to women employees who are covered under the ESI Act
and eligible to avail the benefits under the ESI Act. However, an employer, at its own volition, has the option
to provide certain benefits as provided by the MB Act such as crèche facility and nursing breaks, etc.
Dependents’ Benefits
• Section 46(1)(d) provides for recurrent compensation (typically provided monthly) to the dependants/family
members of someone who dies while working, with the cause of death being an employment injury or
occupational hazard. Compensation is usually 90% of the employee's salary.
Disability Benefits
• In the event that an employee is disabled as a result of an injury sustained while on the job. The disability
may be transitory or permanent in nature. The disablement benefit, unlike the other benefits, does not
require a minimum work contribution, albeit eligibility will be evaluated by the Medical Board.
• This decision has an impact on the amount of compensation awarded, if any, with the average percentage
of wages awarded being about 90%.
• TDB (temporary disablement benefit): From the first day of insurable employment, regardless of whether
or not any contributions have been paid, in the event of an employment injury. For as long as the disability
lasts, a 90 percent of wage Temporary Disablement Benefit is paid.
• PDB (permanent disability benefit): The benefit is provided in monthly instalments at a rate of 90% of wage,
depending on the level of loss of earning capacity as determined by a Medical Board.

Other Benefits
Other benefits relate to non-essential benefits that employees can receive in addition to the five primary perks.
The following are some examples:
• Funeral Expenses: The eldest surviving member of an employee's family gets compensated Rs.10,000 to
execute his dying rites.
• Vocational Rehabilitation: This benefit is for disabled workers who are undergoing rehabilitation.
• Old age medical care: This benefit is accessible to retired employees or those who have left their jobs due
to an injury, with a general compensation of Rs. 120 per month.
• Confinement Expenses: An insured woman or an I.P. in respect of his wife if confinement occurs in a location
where requisite medical facilities are not accessible under the ESI Scheme.
• Physical Rehabilitation: In the event of a physical disability caused by an occupational harm.
• Rajiv Gandhi Shramik Kalyan Yojana: This unemployment allowance plan began on April 1, 2005. An insured
person who becomes unemployed after three years of coverage due to factory/establishment closure,
retrenchment, or permanent invalidity is entitled to the following benefits: o Unemployment Allowance
equal to 50% of wage for a maximum of two years.
• Medical care from ESI Hospitals/Dispensaries for self and family throughout the time IP is receiving jobless
benefits.
• Vocational Training is provided to upgrade skills - ESIC pays for the fees and travel allowance.
• Incentives for firms in the private sector to hire people with disabilities on a regular basis:
• For Physically Disabled Persons, the minimum wage ceiling for ESIC benefits is Rs 25,000/-.
• The Central Government pays the employers' contribution for three years.
Contribution
• Because the E.S.I. Scheme is contributory in character, all employees in the factories or enterprises to which
the Act applies must be insured in accordance with the Act's provisions. In the case of an employee, the
contribution payable to the Corporation will be made up of an employer contribution and an employee
contribution at a certain rate. The rates are updated on a regular basis.
• The rate of contribution has been reduced from 6.5 per cent to 4 per cent of the wages. The employers’
contribution is being reduced from 4.75 per cent to 3.25 per cent and employees’ contribution being
reduced from 1.75 per cent to 0.75 per cent effective from 01.07.2019.

Collection of Contribution
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• An employer is responsible for paying his contribution for each employee and deducting employee
contributions from wages bills, and must pay these contributions to the Corporation at the above stipulated
rates within 15 days of the last day of the calendar month in which the contributions are due. The
Corporation has authorized specified State Bank of India and other institutions to accept payments on its
behalf.
Employees earning daily average wage up to Rs.176 are exempted from ESIC contribution. The employer makes
the contribution from his own share in favour of those employees.
Contribution Period and Benefit Period
• There are two six-month contribution periods and two six-month benefit periods, as shown below.
Contribution period Corresponding Cash Benefit period
Contribution Period Cash Benefit Period
1st April to 30th Sept. 1st Jan of the following year to 30th June
1st Oct to 31st March of the year following. 1st July to 31st December.
In the first case, the Principal employer must contribute.
• The primary employer has to collectively pay the contribution, both his own and that of his employees,
regardless of whether they are directly employed under him or are working through an immediate
employer.
• If a directly employed employee fails to pay his contributions, the employer can only recover that
contribution by deducting the employee's wages.
• The primary employer bears all payment to the Corporation transfer costs, both his own and those of his
employees, regardless of whether they are directly employed under him or working through an immediate
employer.
Contribution reimbursement from the immediate employer
• The principal employer has the right to collect the payment made on behalf of an indirect employee from
the immediate employer as a debt owing to him in the case of an employee who is indirectly employed
under the principal employer via an immediate employer.
• Before paying his dues, the immediate employer must also prepare a list of all the employees under him
and submit it to the primary employer.
Contribution payment provisions in general
• In the event that an employee's wage falls below the Central Government's stipulated wage range, the
employee is not accountable for his contribution and it is not payable.
Method of payment of contributions
The Act's payment regulations have been specified under the following conditions:
• The type and timing of the contribution.
• Payment involving the application of stamps or other adhesives to books of accounts or other documents.
• The contribution evidence that reaches the Corporation must be dated.
• The various entries in the books of accounts, as well as the insured persons' information.
• Replacing papers that have been misplaced, damaged, or disfigured.
Social Security Officers and their functions
• ESIC has the power to appoint persons as Social Security Officers. Their functions are mostly to serve a role
in inspecting the function of the corporation.
• If required, he can acquire any information from any employer as he sees fit.
• He can enter any corporation at any time and can get all the accounts, books and other
• employment documents presented to him without any due notice. This can include information like wages,
expenses, etc.
• He can inspect and look into any matter regarding the employers and employees as and when required
under the jurisdiction of the court.
He can make copies or take extracts from any register or account back as per his discretion.
• Eligibility
• Employees covered under Section 2(9) of the Employee’s State Insurance (ESI) Act 1948.
• The Insured Person should have been in insurable employment for a minimum period of two years.
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• The Insured Person should have contributed not less than 78 days during each of the preceding four
contribution periods.
• The contribution in respect of him should have been paid or payable by the employer.
• The contingency of the unemployment should not have been as a result of any punishment for
misconduct or superannuation or voluntary retirement.

Establishment of Employees’ State Insurance Corporation

• The ESI Act exercises its function through the Employees’ State Insurance Corporation, established via
Section 3, a body created to maintain social security. It was established on 24 February, 1952. The
corporation is supposed to grant relief to the employees in case of medical emergencies.
• Constitution of Corporation
• The composition of the ESIC is defined in Section 4, and it is as follows:
• The Director-General.
• Chairman, appointed by the Central Government.
• Vice-Chairman appointed by the Central Government.
• Not more than 5 persons nominated by the Central Government.
• 1 person to represent each state.
• 1 person representing the Union Territories.
• 10 persons representing employers.
• 10 persons representing employees.
• 2 persons representing the medical profession.
• 3 members of parliament (2: Lok Sabha and 1: Rajya Sabha).

Term of office of members of the Corporation

• Via Section 5, the following members are appointed for up to a 4 year period:
• Director-General.
• Chairman.
• Vice-Chairman.
• The 5 people nominated by Central Government.
• The members representing each state.
• The members representing each Union Territory.

Eligibility for re-appointment or re-election

• An outgoing member of ESIC, the Standing Committee of ESIC, or the Medical Benefit Council is
automatically eligible for re-appointment or re-election into office as the case may be, at the pleasure of
the appointing Central Government.
Authentication of orders, decisions, etc.
• The signature of the Director-General of ESIC is the only necessary requirement to authenticate an outgoing
order or a decision, there is no other way to authenticate or enforce an order.
• The Director-General can also temporarily delegate his authority to any other officer. In this case, the
signature of the authorised officer will also suffice to authenticate an order.
Constitution of Standing Committee
The composition of the Standing Committee of ESIC is as follows:
• A chairman appointed by Central Government.
• 3 members within the corporation representing 3 state governments.
• 3 members within the corporation representing employers.
• 3 members within the corporation representing employees.
• 1 member within the corporation representing the medical profession.
• One MP belonging to the corporation.
• The Director-General.

Terms of office of members of Standing Committee

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• The following members are appointed for a two year period:

• The Chairman.
• The 3 members representing the states.

Medical Benefit Council

• The Medical Benefit Council is an advisory council that advises on medical benefit management under the
ESI plan.
• The Director-General of ESIC, who serves as Chairman.
• As co-Chairman, the Director-General of Health Services.
• ESIC's Medical Commissioner.
• Each state has one member appointed by the state government.
• Employers are represented by three members, while employees are represented by three members.
• Three members, one of them is a woman from the medical field.
Members of the Medical Benefit Council's tenure
• The members of the Medical Benefit Council listed below have been appointed for a four-year term:
• ESIC's Director-General as Chairman.
• As co-Chairman, the Director-General of Health Services.
• ESIC's Medical Commissioner; and one member nominated by each state's government.
Resignation of membership
• The resignation of a member of the Corporation is complete when a notice for the same, in writing, is
delivered to the Central Government, and his seat shall fall vacant upon acceptance of his resignation.
Cessation of Membership
• A member of the ESIC shall cease to be a member of his respective body (Corporation, Standing Committee
or Medical Council) upon failing to attend three consecutive meetings. However, the same member can be
restored by the concerned body via the rules made by the Central Government.
• If in the opinion of the Central Government, any employer, employee or medical representative fails to
represent their qualification, they shall cease to be members of ESIC.
Disqualification
A person can be disqualified as a member of ESIC if:
• If he is declared to be of unsound mind by a qualified court.
• If he is an undischarged insolvent.
• If at any time, he has been convicted of an offence regarding moral turpitude.

Filling of vacancies
• Any vacancy in the office of ESIC shall be filled by appointment or election, as the case may be.
• A member of ESIC can only hold the ex-member’s spot in the respective committee, if the original holder of
that position was found to be eligible for the same. Otherwise, the position is void.
Fees and allowances
• The fees which are payable to the members of the ESIC for their services can be payable at any time, at the
discretion of the Central Government. There is no definitive schedule.
Principal Officers
• The Principal Officers referred to under this Section are the Director-General and/or Financial
Commissioner, to act as the CEO for ESIC.
• They serve as whole-time officers and are not permitted to undertake any work outside of office jurisdiction
without the sanction of the Central Government.
• The time period for the appointment of any principal officer may not exceed 5 years.
• The operation of their fees, disqualification, and cessation of seats operate in the same manner as that of
their subordinates.
Staff
• ESIC has the jurisdiction to employ staff of officers as may be necessary for the optimum running of the
corporation, however, according to the prerequisites in Section 17, the sanction for creating any staff
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position has to be acquired from the Central Government. Their salary shall be prescribed by the Central
government within a particular range, which cannot be exceeded.
• The scale of pay will be determined on the basis of their educational qualifications, method of recruitment,
duties, and responsibilities, etc.
Resignation of membership
• A member of the Corporation's resignation is complete when a written notice of resignation is delivered to
the Central Government, and his seat will become empty upon acceptance of his resignation.
Cessation of Membership
• If a member of the ESIC misses three consecutive meetings, he or she will be removed from his or her
relevant body (Corporation, Standing Committee, or Medical Council). However, under the guidelines
established by the Central Government, the same member can be restored by the concerned authority.
• Any employer, employee, or medical representative who, in the judgment of the Central Government, fails
to represent their qualification will lose their ESIC membership.
Disqualification
• If a qualified judge declares him to be of unsound mind, he can be disqualified as an ESIC member.
• If he is an unpaid insolvent;
• If he has ever been convicted of a crime involving moral turpitude.
Employees’ State Insurance Fund
• The Employees’ State Insurance Fund is the primary monetary source for the ESIC to perform its functions.
All contributions paid under this Act and all other money received on behalf of the Corporation shall be
paid into this fund to be held and administered by the Corporation.
• These could be in the form of grants, donations or gifts by the government.

Expenses of the fund

• The ESI Fund is responsible for maintaining the expenses of ESIC, which are as follows:
• Payment of benefits and provision of medical treatment and attendance to insured persons and their
families, if required.
• Payment of fees and allowances to members of the Corporation, the Standing Committee and the Medical
Benefit Council, the Regional Boards, Local Committees and Regional and Local Medical Benefit Councils.
• Payment of salaries, leave and joining time allowances, travelling and compensatory allowances, gratuities
and compassionate allowances, pensions, etc.
• Establishment and maintenance of hospitals, dispensaries, and other institutions and the provision of
medical and other ancillary services for the benefit of insured persons and their families, if required.
• Payment of contributions to any State Government, local authority or any private body or individual,
towards the cost of medical treatment and attendance provided to insured persons and their families, if
required.
Administrative expenses
• Administrative expenses are termed so, those expenses which cover the costs of administration of ESIC,
prescribed by the Central Government.
• Budget etc. to be placed before Parliament
• The annual report, the audited accounts of the Corporation along with the report of the Comptroller and
Auditor-General of India, and the comments of the Corporation on such report under section 34 and the
budget, as finally adopted by the Corporation, shall be placed before the Parliament.

Allowances and fees

The fees that members of the ESIC must pay for their services can be paid at any moment at the discretion of
the Central Government. There is no set timeline in place.
Penalties

Punishments
All of the penalties for default stated in the ESI Act are covered under Sections 84, 85, and 85A.
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• False Statement: Any individual caught raising the payment or benefit to avoid payment by himself is
suspected of lying. Punishable by up to six months in prison and/or a fine of not more than Rs. 2000. Insured
people who are convicted of this will be denied monetary benefits.
• Failure to pay contribution: Failure to pay the contribution, as well as improperly deducting earnings or
benefits, unfairly punishing an employee, obstructing inspector's responsibilities, and so on, can result in a
sentence of up to three years in prison and a fine of up to Rs. 10,000.
• Subsequent Punishment: If a person is found guilty of the same offence twice, he will be sentenced to a
maximum of two years in prison and a fine of Rs. 5000 for each subsequent offence.
Power of Court to make orders
• It also provides measures for enforcing judicial orders, in addition to the court's ability to recover damages.
If the defaulting employer fails to satisfy the Court's payment deadlines, the employer will be considered to
have committed a new offence, punishable by imprisonment and/or fines.
Damages-recovery authority
• If an employer fails to pay contributions due in any way, whether on his own or on behalf of his employees,
the Corporation has the right to recoup the deficiency through a penalty.
• This contribution recovery will not take place, however, until the person in charge has been given a
reasonable opportunity to be heard about the failure to pay the contribution.
Prosecution
• Section 86 of the ESI Act states that any prosecution must first acquire the approval of the Insurance
Commissioner or another authorized authority, such as the Corporation's Director-General. Under the ESI
Act, no court lower than a First Class Magistrate can try an offence, and no court will take cognizance of any
offence reported under the Act.
Offences by companies
• Taking cues from the concept of a commercial entity, where each firm is treated as an individual, i.e., it is a
separate legal entity that can sue or be sued in a court of law.
• As a result, when a corporation is accused of committing a crime, all of its managerial personnel who were
in charge of the company at the time will be tried alongside the company and found guilty of the same
crime. They will face the consequences as a result.
Exemptions
• Sections 87, 88, 90, 91, and 91A of the Internal Revenue Code specify the conditions under which certain
benefit exclusions may be granted.
• The suitable government (appropriate here meaning the government exercising more authority, in closer
vicinity) can exempt the following from the benefits of the ESI Act (if they were already receiving those
benefits) by a notification in the Official Gazette:
• Factory/establishment or a class of factories/establishments.
• Persons or classes of persons.
• Government-owned factories or establishments.
• Any of the aforementioned from a specific Act provision.
• Any of the above could be excused in the future for a set amount of time.
Wage Limit
• Employees with a monthly income of less than Rs.21,000 are eligible for the scheme's benefits. To
summarize, employees who work for companies or establishments with 10 or more employees and monthly
earnings of up to Rs.21,000 are eligible for health benefits under the ESI Act.
• In the case of daily average wages of Rs.137, there are exceptions to the rule. They are not required to
contribute from their earnings to the scheme. For such people, just the employer's payment is paid.
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 Two Years.
• Medical care for self and family from ESI Hospitals/Dispensaries during the period IP receives
unemployment allowance.
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• Vocational Training provided for upgrading skills - Expenditure on fee/travelling allowance borne by ESIC.
• Incentive to employers in the Private Sector for providing regular employment to the persons with disability
:
• Minimum wage limit for Physically Disabled Persons for availing ESIC Benefits is Rs 25,000/-.
• Employerss' contribution is paid by the Central Government for 3 years.
Atal Beemit Vyakti Kalyan Yojana
• Atal Beemit Vyakti Kalyan Yojana is a welfare measure being implemented by the Employee’s State
vii. Insurance
Any other (ESI) Corporation.
matter in respect of any contribution or benefit or other due payable or
• It offers cash
recoverable compensation
under the Act. to insured persons when they are rendered unemployed.
• The Scheme was introduced in 2018.
Claims as to
• The scheme provides relief to the extent of 25% of the average per day earning during the previous four
i. contribution periods (total
Recovery of contributions earning
from the principalduring the four contribution period/730) to be paid up to maximum 90
employer,
days of unemployment once in lifetime of the Insured Person.
• ii. The Recovery
claimoffor
contributions from the
relief under a contractor,
Atal Beemit Kalyaan Yojana will be payable after the three months of his/her
iii. clear unemployment.
Recovery for short payment or non-payment of any contribution under section 68,

Keyiv. takeaways
Recovery of the value or amount of benefits received improperly under section 70,
• The ESI Act is a necessary utility for a working-class employee in India, as it benefits them while also
v. Recovery of any benefit admissible under the Act
benefiting sectors outside of the working class.
• dispute
No Apartshall
from providing
be admitted medical
unless benefits
the employer towith
deposits employees,
the Court 50%the Employees'
of the amount dueState Insurance Act also regulates
from many other by
him as claimed indirect aspects of effectively managing the Corporation established by the Act, such as sales
the Corporation.
proceedings, account management, and power separation among its many officers.
An appeal will lie to the High Court within 60 days against an order of the Employees Insurance Court
• Employees' State Insurance Corporation (ESIC) is a government agency in charge of administering the
if it involves a substantial question of law.
Employees' State Insurance (ESI) program. Employees and their families are provided with medical and
financial help under the scheme.
• The minimum number of employees required to subscribe for ESI scheme varies with states, such as
Maharashtra, Meghalaya, Mizoram, Nagaland, Goa, Chandigarh, and Assam-20; Jharkhand, Haryana,
Karnataka, Rajasthan, Tripura, West Bengal, Andhra Pradesh, and Delhi-10.
Important Forms to be submitted under the Act

Important Forms to be submitted under the Act

Form 01 : Employers' Registration Form

Form of Annual Information on

Form 01(A) :
Factory/Establishment

Form 1 : Declaration Form

Form 1A : Family Declaration Form

Form 1B : Changes in Family Declaration Form

Form 3 : Return of Declaration Forms

Form 4 : Identity Card

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Form 4(A) Family Identity Card

Form 5 Return of Contributions

Form 6 Register of employees

Form 8 Special Intermediate Certificate

Abstention verification in r/o Sickness

Form 10
Benefit/Temporary Disablement Benefit/MB

Form 12 Sickness of Temporary Disablement Benefit

Form 12A Maternity Benefit for Sickness

Sickness or Temporary disablement or maternity

Form 13
benefit for sickness

Form 13A Maternity benefit for sickness

Sickness or temporary disablement or maternity

Form 14
benefit for sickness

Form 14A Maternity Benefit for Sickness

Form 16 Accident report from employer

Form 17 Dependant's or funeral benefit (Death Certificate)

Form 18 Dependant's Benefit (Claim Form)

Form 18A Dependant's Benefit (Claim for periodical payments)

Form 19 Maternity Benefit (Notice of Pregnancy)

Form 20 Maternity Benefit (Certificate of Pregnancy)

Maternity Benefit (Certificate of expected

Form 21
confinement)

Form 22 Claim for Maternity Benefit

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Maternity Benefit (Certificate of confinement or

Form 23
miscarriage)

Form 24 Maternity Benefit (Notice of work)

Form 25 Claim for Permanent Disablement Benefit

Form 26 Certificate for permanent disablement benefit

Form 27 Declaration and certificate for dependant’s benefit

4c. EMPLOYEES PROVIDENT FUND AND MISC. PROVISIONS ACT, 1952

An Act to provide for the institution of provident funds, pension funds and deposit linked insurance
fund for the employees in the factories and other establishments. The Act extends to the whole of
India except the State of Jammu and Kashmir.

Applicability

➢ All factories and establishments in which 20 or more are employed

Schemes under the Act

Three beneficial schemes-

1. Employees Provident Fund Scheme 1952

2. Employees Pension Scheme 1995

3. Employees Deposit Linked Insurance 1976

Membership

➢ An employee at the time of joining the employment and getting wages up to Rs.6500/- is
required to become a member.

➢ An employee is eligible for membership of fund from the very first date of joining a covered
establishment.

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