Objective: To provide social security to employees in case of sickness, maternity, injury, or death arising from employment.
Enactment: Passed in 1948 and administered by the Employees' State Insurance Corporation (ESIC).
Applicability:
Factories and establishments with 10 or more employees.
Wage ceiling for eligibility: ₹21,000 per month (₹25,000 for disabled employees).
Contributions:
Employer Contribution: 4.75% of wages.
Employee Contribution: 0.75% of wages.
Benefits Under the Act:
Medical Benefit: Comprehensive medical treatment for insured employees and dependents.
Sickness Benefit: 60% of wages for 91 days during sickness.
Maternity Benefit: Paid leave up to 26 weeks for childbirth.
Disablement Benefit: Financial support for temporary and permanent disabilities.
Dependent Benefit: Pension to family members in case of an employee's death.
Funeral Expenses: Fixed amount provided for funeral costs.
Contribution Period:
April – September and October – March.
Benefit Period:
Corresponding 12-month period for availing benefits after the contribution period.
Penalties for Non-Compliance:
Section 85: Non-payment of contributions can result in fines up to ₹10,000 and imprisonment for up to 2 years.
Significance:
Ensures financial and medical protection to workers and their families.
Promotes health security and workplace welfare.
The ESI Act plays a pivotal role in protecting the workforce by offering critical social and economic security during unforeseen circumstances.
