ESI Act’1948
What is the Esic Act 1948?
The ESIC Act 1948, officially known as the Employees’ State Insurance Act, was enacted on April 19, 1948. It is designed to provide social security benefits to employees working in the private sector, covering aspects like sickness, maternity, and workplace injuries. Under this act, both employers and employees are required to make contributions. It offers a range of benefits including medical treatment, cash support, and maternity benefits. Factories and organisations with 10 or more employees, earning at least Rs 21,000, are mandated to comply with this law.
Key Highlights of the ESIC Act 1948
- Coverage: The ESIC Act 1948 covers all types of workers including regular, contractual, casual, and temporary employees from the first day of employment. There are no upper age limits for coverage, and medical examination is not required for registration.
- Medical Benefits: Employees and their families receive comprehensive medical care, including surgical procedures, consultations, ambulance services, and medications. Benefits extend post-retirement for a nominal annual fee of Rs. 120.
- Sickness Benefits: Employees who have contributed for at least 78 days in a specified period can avail themselves of sickness benefits. The rate is 70% of the average daily wages for up to 91 days in two consecutive periods. Extended sickness benefits are available for chronic diseases at an upgraded rate of 80% of wages.
- Maternity Benefits: Insured women employees are entitled to maternity benefits if they have worked for at least 70 days in two consecutive periods. The benefit includes payment of average daily wages for up to 26 weeks, with 8 weeks before the expected delivery date. In cases of miscarriage or medical termination, women can receive 12 weeks of paid leave.
- Disablement Benefits: There are two types of disablement benefits:
- Temporary Disablement Benefit: Provides 90% of the average daily wages from the first day of insurable employment.
- Permanent Disablement Benefit: Offers 90% of the monthly salary based on the severity of the loss of earning capacity, as certified by the Medical Board. This can be for a specific period or for life, depending on the assessment.
- Other Benefits:
- Funeral Costs: A sum of Rs. 15,000 is payable to the dependents or the person performing the final rites from the first day of insurable employment.
- Confinement Costs: For cases where confinement occurs in places lacking essential medical facilities, support is provided to ensure the safety and care of the employee or their spouse.
For a thorough understanding and guidance on the ESIC Act 1948, V&S Consultants offer expert advice. Their ESIC & EPF Consultant is available both online and offline to help you navigate the provisions of this act and maximise its benefits. Whether you’re an employee or an employer, V&S Consultants can assist you with comprehensive labour law consultations.