Dear Readers,
Wish You a Happy May Day - 2023
The Employees State Insurance
Act, 1948 is beneficial and social legislation. Its main aim is to provide
economic security to people who work in certain factories and establishments.
The ESI scheme provides complete
medical care to the employees registered with the ESIC during the period of
his/her incapacity and working capacity. It also provides financial assistance
to compensate for the loss of wages of the employee during the period of
his/her abstention from work due to sickness, maternity and employment injury.
The ESI scheme provides medical care to family members of the employee also. The
Act contains several important definitions and provisions that regulate these
workers.
At present, the ESI scheme is applicable to all factories and other
establishments as defined in the Act with 10 or more persons employed in such
establishment and the beneficiaries’ monthly wage does not exceed Rupees twenty-one thousand (Rs 21,000) are covered under the scheme. In future this limit may
change subject to government policy. Whether the employer has employed 10 or more
employees, all employees employed by the employer, agnostic of the salary are
reckoned. The applicability of the scheme is explained through a flow chart
below:
Please take a note that Construction Industry does not cover under ESI if it is a green field project. For the similar benefits Construction Industry used to follows BOCW Cess Act. However, it may differ for brown field project hence follow the principle employer guidance. Establishments that are covered
under the ESI Scheme
The Central Government issued a
notification that all factories where 10 or more persons are employed are
covered under the ESI scheme mandatorily. The following establishments
employing 10 or more persons are also mandatorily covered under the ESI scheme:
1). Shops.
2). Hotels or restaurants not
having any manufacturing activity, but only engaged in ‘sales’.
3). Cinemas, including preview
theatres.
4). Road motor transport
establishments.
5). Newspaper establishments.
6). All private educational institutions
and medical institutions.
Benefits of the ESI Scheme
Broadly, the benefits under this
scheme are categorized under two categories:
Cash benefits
(which includes sickness, maternity, disablement (temporary and permanent),
funeral expenses, rehabilitation allowance, vocational rehabilitation and
medical bonus) and,
Non-cash
benefits through medical care.
Complete medical care and
attention are provided by the scheme to the employee registered under the ESI
Act, 1948 at the time of his incapacity, restoration of his health and working
capacity.
During absenteeism from work due
to illness, maternity or factories accidents which result in loss of wages
complete financial assistance is provided to the employees to compensate for
the wage loss.
The scheme provides medical care
to family members also.
In case a worker under the Act
dies during employment, the ESI Corporation pays some money to his dependents. According
to the Act, dependents are certain relatives of a deceased worker. These
include his widow, a son below 25 years of age, an unmarried daughter and his
widowed mother. A son/daughter above 25 years can also be a dependent if he/she
is wholly dependent on the worker.
Pregnancy which leads to the
birth of a living child is called “confinement” under this Act. It can also
mean the birth of a child (living or dead) after 26 weeks of pregnancy.
The ESI Act contains a few
categories of disablements for which employees can claim compensation. These
may be either permanent or temporary. Permanent disablements may further be
either partial or total.
For More Details about BOCW Cess Click
Here
For More Details about Rules and Regulations Click
Here For More Details about Labour Law's of Construction Industry Click
Here
For More Details about Labour Welfare Fund Click
Here
