| Employees’ State Insurance Scheme of India
is an integrated social security scheme tailored
to provide social protection to workers and their
dependants, in the organised sector, in contingencies,
such as, sickness, maternity and disablement or
death due to an employment injury or occupational
hazard.
The ESI Act, (1948) applies to following categories
of factories and establishments in the implemented
areas:-
- Non-seasonal factories using power and employing
ten(10) or more persons
- Non-seasonal and non power using factories
and establishments employing twenty (20) or
more persons.
The "appropriate Government" (State or
Central) is empowered to extend the provisions of
the ESI Act to any class of establishments, industrial,
commercial or agricultural or otherwise. Under these
enabling provisions, the State Govts have extended
the provisions of the ESI Act to certain specified
class of establishments, such as, shops, hotels,
restaurants, cinemas, preview theatres, road-motor
transport undertakings and newspaper establishments
employing 20 or more persons.
The ESI Scheme is mainly financed by contributions
from employees and employers, as a fixed percentage
of wages. The employees contribute @1.75% of their
wage while the employers contribute 4.75% of the
total wages of the covered employees. Employees
of covered units and establishments drawing wages
upto Rs. 10000/- per month (excluding overtime)come
under the purview of the scheme for social security
benefits. However, employees’ earning upto
Rs. 70/- a day as wages are exempted from payment
of their part of contribution.The State Govts
bear one-eighth share of expenditure on Medical
Benefit while the Corporation meets 7/8th share
of expenditure thereon.
Employees covered under the scheme are entitled
to medical treatment and attendance for self and
dependants. They are also entitled to cash benefits
in the event of specified contingencies resulting
in loss of wages or earning capacity. The insured
women are entitled to maternity benefit for confinement.
Where death of an insured employee occurs due
to employment injury, the dependants are entitled
to family pension
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