The Employee's State Insurance Act, 1948 (ESI Act)

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The Employee’s State Insurance Act, 1948 (ESI Act)

Table of Content

 Introduction

 Objectives

 Applicability of this Act

 Non- Applicability of this Act

 Administration of this Act

 Registration under this Act

 Benefits

 Conclusion
INTRODUCTION

 ESI Scheme of India, is a multidimensional social security system tailored to provide

socio-economic protection to worker population and their dependents covered under


the scheme.
 Pioneering measure in social insurance in India.

 Originally called “workmen’s state insurance bill” 1946.

 Came into force on 19th April 1948


OBJECTIVE OF THE ACT

It is to provide certain benefits to employees in case of sickness, maternity and


employment injury to employees of factories and establishments and also to make
provisions for certain other matter incidental thereto.
APPLICABILITY OF THE ACT

 In factories, shops, educational Institutes, hotels, etc. where 10 or more workers are

employed
 It is not applicable to State & Central Govt Institutions, if benefits provided are already

superior than those of E.S.I


 It is only applicable to those persons whose wages does not exceed Rs. 15000 per

month
 Any one works for wages in connection with the work of Factory/Establishment comes

under the definition of employee.


NON – APPLICABILITY OF THE ACT

 The Act, however, does not apply to mine or railway running shed, and specific

seasonal factories
 The state government may extend the provisions of the Act to cover other
establishments or class of establishments. Industrial, commercial, agriculture or
otherwise, in consultation with ESI
 Corporation and with the approval of the central government, after getting six months

notice of its intention to do so in the Official Gazette.


ADMINISTRATION OF THE ACT

 There is formed a statutory body called Employee State Insurance Corporation for the

administration of this act.


 Ministry of labour is chairman of the corporation

 It includes representative of Central Govt, State Govt, Employer, Employee, Medical

profession, & parliament


 The CEO of the corporation is Director-General

 There is executive body for implementing the day-day operations of the corporation

 There is medical Benefit Council to advise on medical benefits

 There is formation of E.S.I fund for the purpose of giving cash benefits
REGISTRATION UNDER THE ACT

 There is compulsory registration for every new employee by filling the declaration

form within 10 days of joining the establishment.


 A new establishment fills form 01 to be submitted to the local E.S.I office within 15

days of its start of operations


 A code no. is allotted to every organization

 An employee cannot fill declaration form more than once

 On receiving the form , a smart I-card is allotted to every employee.


BENEFITS

 Sickness & Extended sickness benefit

 Maternity benefit

 Disablement benefit

 Dependant’s benefit

 Funeral benefit

 Medical benefit
CONCLUSION

In this conclusion the ESI act is unique in the fact that it works in advantageous ways for
both employees and employers. While employees are insured under this act and get
financial aid in case of an injury, the employers are also protected from being harm in
course of employment paying compensation to the employees.
The Employees’ State Insurance Act, apart from medical benefits provided to employees,
also controls many more indirect aspects of efficiently managing the Corporation
established by the Act, be it its sales proceedings, account management or separation of
powers amongst its various officers.

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