Know all about benefits of ESIC
Saloni Sheth / 2020-02-06 05:18:23


The ESI Act 1948, which covers workers with salary of up to Rs 21,000, under the labor ministry. The government increased the wage ceiling to Rs 21,000 in December 2016 from Rs 15,000 in order to increase the formal workforce of the country. With the move by the government to raise the wage coverage limit under the scheme, registration under the scheme has increased. The ESI Act provides provision of cash, maternity, medical, disability and dependent perks to insured persons financed by payments made by workers and employers. The Employees ' State Insurance Corporation, under the Labor Ministry, administers the scheme.

From previous contribution rates to current contribution rate

Data from the Labor Ministry indicates that in 2018-2019, Rs 22,279 crore was contributed by 36 million employees below the scheme. In line with Employees ' State Insurance (ESI) Act, the government has cut the contribution down from 6.5% to 4%. This step is projected to rise the wage of workers at home and decrease employers ' economic burden. 36 million workers and 1,28 million employers will benefit from the decision.

The workplace ministry said in a statement on Thursday that the contribution of employers had decreased by 1,5 percent to 3,25 percent, down from 4,75 percent, and by 1 percent to 0,75 percent, up from 1,75 percent.

Who can apply for ESI?

The ESI scheme applies to all factories and other infrastructure under the Act with 10 or more staff in that unit and is subject to the scheme and the monthly salary of the beneficiaries does not exceed Rs 21000. Whether the employer employs 10 or more employees, the agnostic wage is determined for everyone employed by the company.

What is the coverage?

Initially, only two industrial centres in the country, namely Kanpur and Delhi, implemented the ESI Scheme in 1952. Since then, its regional reach and population density have not looked back. The Scheme is now running at over 843 centres in 33 States and Union Territories and is keeping pace with the industrialisation process. The Act currently extends to more than 7.83 lakhs across the country, benefiting approximately 2.13 crores of insured persons / family units. The cumulative beneficiary is now more than 8,28 crores.

What are the benefits?

Medical Benefits: The Employee State Insurance Fund offers reasonable medical insurance for a person's medical expenses. The policy takes effect on the first day of work.

Disability Benefit: When an employee is injured, ESIC shall ensure, for temporary disability or for the duration of a permanent disability, that the employee is paid his monthly wages.

Maternity Benefit: ESIC supports an employee in bringing their baby into the family with benefits. For a period of up to 26 weeks from the date of having the baby and six weeks in the event of miscarriage, ESIC gives a total of 100% of the average daily wages. In case of adoption, 12 weeks ' compensation shall be granted.

Sickness Benefit: ESIC guarantees a cash flow to the household of an employee during the medical leave. For a maximum period of 91 days during two continuous benefit periods 70 per cent of an employee's average daily wages are paid during medical leave.

Unemployment Allowance: In case of a permanent invalidity triggered by a non-employment accident or involuntary job losses ESI offers a monthly cash payment for a duration of no longer than 24 months.

Dependent's Benefit: In the case of a premature death from injury in the job site, ESIC will provide monthly payments to the remaining dependents.

Other advantages offered by ESI include:

Containment Expenses 
Physical rehabilitating
Funeral costs 
Professional Training 
Skill up gradation training under Rajiv Gandhi Shramik Kalyan Yojana

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