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Employees' State Insurance Act, 1948

Applicability:

  • All factories excluding seasonal factories employing 10 or more persons and working with power.
  • All factories excluding seasonal factories employing 20 or more persons and working without power.
  • Any establishment which the Government may specifically notify as being covered.
  • Shop Employing 20 or more persons.

Note: As soon as the above conditions are fulfilled the employer should furnish the details in Form – 01 to ESI office for registration under the ESI Act, 1948 & Obtaining of the employer's Code No.

Eligibility:

  • Any person employed for wages (upto Rs. 7500) a month, excluding remuneration for overtime work in or in connection with the work of a factory or establishment and
  • Any person who is directly employed by the employer in a factory or through his agent on work which is ordinarily part of the work of the factory or incidental to purpose of the factory.

Benefits:

  • Free medical treatment is offered to covered employees at hospital and dispensaries run by the ESI Corporation.
  • About 7/12th of employees normal wage will be payable to him by ESI during sickness.
  • Maternity benefit for 12 weeks of which not more than 6 weeks should be preceding confinement.
  • Injury during/in course of employment resulting in temporary/permanent disablement entitles the covered employee to a regular payment to substitute his lost wages.
  • Death during course of employment entitles specified dependents to a regular payment.
  • One time payment of Rs. 2,500 to help meet funeral expenses.
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