Employees' State Insurance Scheme of India, is a multidimensional social
security system tailored to provide socioeconomic protection to workers
population in organised sector and their dependents covered under the scheme
Besides full medical care for self and dependents, that is admissible from day
one of insurable employment, the insured persons are also entitled to sickness,
temporary or permanent disablement etc. resulting in loss of earing capacity,
the confinement in respect of insured women, Dependents of insured persons
who die in industrial accidents or because of employment injury or occupational
disease are entitled to a monthly pension called the dependents benefit.
The ESI Scheme was launched for the first time at Delhi and Kanpur on 24.02.1952,
thereby completing 56 years of dedicated service in the field of Social Security
on 24.02.08. The Scheme was inaugurated by the first Prime Minister of
Independent India, late Pandit Jawaharlal Nehru, who also happened to be
the First Insured Person of the Scheme.
On an average the ESI Corporation makes 40 lac individual payments each year
amounting to about Rs. 300 crores through its wide spread network of 825
Branch Offices in the 741 implemented areas. For availing cash benefit in
different contingencies insured persons or their dependants have to complete some
minimal formalities and follow certain set proceudres.
APPLICABILITY OF THE ESI ACT, 1948 AS AMENDED UPTO DATE:
Non-seasonal factories using power and employing ten (10) or more persons under Sec. 2(12) of the ESI Act.
Non-seasonal and non-power using factories and establishments employing twenty (20) or more persons under Sec. 1(5) of the ESI Act.
CONTRIBUTION AS PER RULE 51 OF ESI CENTRAL RULES, 1950 :
Employees' Contribution : 1.75 percent of wages
Employers' Contribution : 4.75 percent of wages
Employees earning upto Rs. 70/- a day as wages are exempted from payment of their part of contribution (w.e.f. 01-08-2007) under Rule 52 of ESI Central Rules, 1950.
WAGE CEILING AS PER RULE 50 OF ESI CENTRAL RULES, 1950:
Employees of covered units and establishments drawing wages upto
Rs. 10,000/- per month (excluding overtime wages, w.e.f. 01-10-2006) come under the purview of the ESI Act, 1948, for multi-dimensional social security benefits. (However, wage limit in respect of Disabled Persons is Rs.25,000/- w.e.f. 01-04-2008)
BENEFITS TO EMPLOYEES UNDER ESI SCHEME:
The Medical Benefit is provided to an IP/familiy from the very day one joins the insurable employment.
Sickness Benefit (Cash)
Extended Sickness Benefit
Enhanced Sickness Benefit
Disablement Benefit (Cash)
Temporary Disablement Benefit
Permanent Disablement Benefit
Other Benefits (Funeral expenses, Rehabilitation Allowance, Vocational Training for Disabled Employees, Confinement Allowance, Un- employment Allowance (RGSKY-Rajiv Gandhi Sramika Kalyan Yojana) etc.
BENEFITS TO THE EMPLOYERS :
Exemption from applicability of Workmen's compensation Act, 1923, Maternity Benefit Act,1961 etc.
Medical needs of the worker and their family, taken care of by ESI Scheme.
Healthy and happy workforce.
Statutory compulsion of compliance of ESI Act, 1948.