EMPLOYEES STATE INSURANCE CORPORATION (ESIC)
The promulgation of Employees' State Insurance Act, 1948 envisaged an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement or death due to employment injury resulting in loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependents. Employees covered under the scheme are entitled to medical facilities for self and dependents. They are also entitled to cash benefits in the event of specified contingencies resulting in loss of wages or earning capacity.
Following promulgation of ESI Act, Central Government set up the ESI Corporation to administer the Scheme. The Scheme thereafter was first implemented at Kanpur and Delhi on 24th February 1952. The Act further absolved the employers of their obligations under the Maternity Benefit Act, 1961 and Workmen's Compensation Act 1923. The benefits provided to the employees under the Act are also in conformity with ILO conventions.
ESI Applicability:
- The Employees State Insurance Act,1948 extends to whole on india;
- It applies to all factories / establishments running with the aid of power and employing 10 or more persons and to those factories which run without the aid of power and employing 20 or more persons;
ESI Eligibility:
Employees drawing salary / wages not exceeding Rs 15000/- per month are covered under the provisions of ESI Act.
Rate of ESI Contribution:
| Obligation | Monthly Contribution |
|---|---|
| Employer's Contribution | 4.75% of the wages payable employee |
| Employees' Contribution | 1.75% of the wages payable to an employee |
The section 46 of the Act envisages following six social security benefits:
- Medical Benefit
- Sickness Benefit
- Maternity Benefit
- Disablement Benefit
- Dependents' Benefit
- Other Benefits like funeral expenses, Confinement expenses
In addition, the scheme provides some other need based benefits to the workers as well:
- Vocational Rehabilitation
- Physical Rehabilitation
- Old Age Medical Care
- Gandhi Shramik Kalyan Yojana
- Incentives to employers in private sector for providing regular employment to persons with disability