Benefits Under Employees’ State Insurance Act, 1948

Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt)Professor

Objective of ESI Act

To provide benefits for sickness, maternity, disablement and medical treatment to employees of factories and establishments and to the dependents of such employees

Benefits under the Act Six kinds of benefits are provided under the Act:

Sickness benefit Maternity benefit Disablement benefit Dependents’ benefit Medical benefit and Funeral expenses

1. Sickness benefit Insured employees is entitled to receive for the period of his

sickness at the daily “standard benefit rate”Minimum 78 days of corresponding contribution is mustBenefit is not available for the first 2 days of sicknessMaximum period for benefit is 91 days in one year

Standard benefit rateDaily rate at which sickness benefit is payable during period of

sickness:- Lowest rate is Rs. 14/-- Highest rate is Rs. 195/-

2. Maternity benefitConfinement, miscarriage or medical

termination of pregnancySickness arising out of pregnancy, confinement,

premature birth of child or miscarriage or medical termination of pregnancy

Minimum 80 days in the immediately preceding two consecutive contribution periods is must

Maximum period for benefit is 91 days in one year.

3. Disablement benefitPermanent disablement, whether total or

partial, as a result of an employment injuryBenefit for the whole of life

4. Dependents’ benefitWhen an insured employee dies as a result of

an employment injury, his widow and children

In absence of widow or children, his other dependants, are entitled to receive periodical payments

5. Medical benefitsSickness of Insured employee or any member

of his familyAvailable to employee during the period for

which contributions has been paid for him

6. Funeral expensesIn case of death of an insured employee,

the eldest surviving member of his family gets “funeral expenses”

If employee had no family or not living with family, then person incurring expenditure for funeral, gets “funeral expenses”

Maximum permissible amount of such payment is Rs. 2500/-

Benefits cannot be combined An employee is not entitled to receive two

benefits at the same time

(a)Both sickness benefit and maternity benefit;

(b)Both sickness benefit and disablement benefit for temporary disablement;

(c)Both maternity benefit and disablement benefit for temporary disablement

Offences If any employer -(a) Fails to pay any contribution payable by him

under the Act(b) Deducts from the wages of an employee the

employer's contributions(c) Fails to submit any return required by the

regulations, or makes a false return

He would be punished with imprisonment upto 1 year or with fine upto Rs. 4000/- or with both

Revision w.e.f. 01.12.2007

1. The daily rates of sickness benefit has been increased by 20 per cent.

2. Daily rates of disability benefits have been increased to 50 per cent from 40 per cent

3. Daily rates of dependent’s benefit have been increased to 50 per cent from 40 per cent

4. Funeral expenses has been increased to Rs. 3,000/- from Rs. 2,500/-