ESIC CONTRIBUTION

Contribution

E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.50/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.

Collection of Contribution

An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period


There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.

Contribution period Corresponding Cash Benefit period

1st April to 30th Sept. 1st January of the following year to 30th June.

1st Oct. to 31st March 1st July to 31st December of the year following

ESIC BENEFITS
Benefits

The section 46 of the Act envisages following six social security benefits :-

(a) Medical Benefit

(b) Sickness Benefit(SB)

1. Extended sickness Benefit(ESB)
2. Enhanced Sickness Benefit

(c) Maternity Benefit(MB)

(d) Disablement Benefit

1. Temporary disablement benefit(TDB)
2. Permanent disablement benefit(PDB)

(e) Dependants’ Benefit(DB)

(f) Funeral Expenses

An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity as a fixed percentage of the workers wages, whereas, they are provided social security benefits according to individual needs without distinction.

Cash Benefits are disbursed by the Corporation through its Local Offices LOs/ Mini Local Offices (MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory conditions.

In addition, the scheme also provides some other need based benefits to insured workers.

These includes :

1. Rehabilitation allowance
2. Vocational Rehabilitation
3. Unemployment Allowance (Under Rajiv Gandhi Shramik Kalyan Yojana)

ESIC COVERAGE

Coverage

COVERAGE UNDER THE ESI ACT, 1948

The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).

AREAS COVERED

The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories

STATES
All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.

UNION TERRITORIES
Delhi, Chandigarh and Pondicherry

COVERAGE :
Coverage(As on 31st March, 2006)
No. of Insured Person family units 91,48,605
No. of Employees 84,00,526
Total No. of Beneficiaries 3,54,96,589
No. of Insured women 15,43,25