Hi, Let us post our discussions, queries & clarifications and share our knowledge on ESI ...... YOUR CONTRIBUTIONS ON THE TOPIC ARE INVITED & HIGHLY APPRECIATED... Regards CRK crk.mbahr@yahoo.com
From India, Vijayawada
From India, Vijayawada
The Employees' State Insurance Act, 1948 is a piece of social welfare legislation enacted primarily with the object of providing certain benefits to employees in case of sickness, maternity, and employment injury, and also to make provisions for certain other matters incidental thereto.
The Act, in fact, tries to attain the goal of socio-economic justice enshrined in the Directive Principles of State Policy under Part IV of the Constitution, in particular, articles 41, 42, and 43, which enjoin the State to make effective provision for securing the right to work, to education and public assistance in cases of unemployment, old age, sickness, and disablement, and in other cases of any undeserved want to make provision for securing just and human conditions of work, and maternity relief and to secure by suitable legislation or economic organization or in any other way, to all workers, work, a living wage, a decent standard of life, and full enjoyment of leisure and social and cultural activities. The Act strives to materialize these avowed objects though only to a limited extent. Broadly, the benefits provided by the Act to insured persons or their dependants are:
(i) periodical payment in case of sickness of the insured person (sickness benefit);
(ii) periodical payment to an insured woman in case of confinement or miscarriage or sickness arising out of pregnancy, confinement, the premature birth of a child, or miscarriage (maternity benefit);
(iii) periodical payment to an insured person suffering from disablement as a result of an employment injury (disablement benefit);
(iv) periodical payment to dependants of an insured person who dies as a result of an employment injury (dependant's benefit);
(v) medical treatment for and attendance on the insured person (medical benefit), and
(vi) payment for expenditure on the funeral of the insured person (funeral expenses).
Here employment injury includes occupational diseases, and disablement may either be temporary or permanent, whether total or partial.
This Act covers a wider spectrum than the Factories Act in the sense that while the Factories Act concerns the health, safety, welfare, leave, etc., of the workers employed in the factory premises only, the benefits of this Act extend to employees whether working inside the factory or establishment or elsewhere or they are directly employed or employed by the principal employer or through an intermediate agency if the employment is incidental or in connection with the work in the factory or establishment, meaning thereby, under the Act, it is not the place of work but the nexus between the work and the factory or establishment to which the Act is extended is material.
Extensive regulations have been framed under the Act to identify the employees who would be entitled to the benefits. The employees are to be registered and their contribution cards and identity cards are to be prepared.
An employee, therefore, has to be identified in the records of the Employees' State Insurance Corporation so that he is entitled to claim various benefits. An elaborate machinery is provided for the effective administration of the Act, the apex body being the ESI Corporation, subordinate to which are the Standing Committee and Medical Benefit Council. The Corporation is a public corporation controlled and subsidized by the government for the benefit of the employees, its object being rendering service to a penurious section of the public. The funds required for the functioning of the scheme are raised from contributions, both of employers and employees, grants, donations, and gifts from governments, local bodies, individuals, or bodies whether corporate or not (ESI Fund). For adjudication of disputes and claims, Employees Insurance Courts are being created. Provision for the recovery of contribution, penalty, and damages for default, prosecution, and punishment, etc., have also been provided.
The ever-expanding industrial horizon and reciprocal uprising of labor consciousness necessitate the employer and employee to be conversant with the current labor legislations that govern their relationship, rights, and obligations.
YOUR CONTRIBUTIONS ON THE TOPIC ARE HIGHLY APPRECIATED...
Regards
CRK
From India, Vijayawada
The Act, in fact, tries to attain the goal of socio-economic justice enshrined in the Directive Principles of State Policy under Part IV of the Constitution, in particular, articles 41, 42, and 43, which enjoin the State to make effective provision for securing the right to work, to education and public assistance in cases of unemployment, old age, sickness, and disablement, and in other cases of any undeserved want to make provision for securing just and human conditions of work, and maternity relief and to secure by suitable legislation or economic organization or in any other way, to all workers, work, a living wage, a decent standard of life, and full enjoyment of leisure and social and cultural activities. The Act strives to materialize these avowed objects though only to a limited extent. Broadly, the benefits provided by the Act to insured persons or their dependants are:
(i) periodical payment in case of sickness of the insured person (sickness benefit);
(ii) periodical payment to an insured woman in case of confinement or miscarriage or sickness arising out of pregnancy, confinement, the premature birth of a child, or miscarriage (maternity benefit);
(iii) periodical payment to an insured person suffering from disablement as a result of an employment injury (disablement benefit);
(iv) periodical payment to dependants of an insured person who dies as a result of an employment injury (dependant's benefit);
(v) medical treatment for and attendance on the insured person (medical benefit), and
(vi) payment for expenditure on the funeral of the insured person (funeral expenses).
Here employment injury includes occupational diseases, and disablement may either be temporary or permanent, whether total or partial.
This Act covers a wider spectrum than the Factories Act in the sense that while the Factories Act concerns the health, safety, welfare, leave, etc., of the workers employed in the factory premises only, the benefits of this Act extend to employees whether working inside the factory or establishment or elsewhere or they are directly employed or employed by the principal employer or through an intermediate agency if the employment is incidental or in connection with the work in the factory or establishment, meaning thereby, under the Act, it is not the place of work but the nexus between the work and the factory or establishment to which the Act is extended is material.
Extensive regulations have been framed under the Act to identify the employees who would be entitled to the benefits. The employees are to be registered and their contribution cards and identity cards are to be prepared.
An employee, therefore, has to be identified in the records of the Employees' State Insurance Corporation so that he is entitled to claim various benefits. An elaborate machinery is provided for the effective administration of the Act, the apex body being the ESI Corporation, subordinate to which are the Standing Committee and Medical Benefit Council. The Corporation is a public corporation controlled and subsidized by the government for the benefit of the employees, its object being rendering service to a penurious section of the public. The funds required for the functioning of the scheme are raised from contributions, both of employers and employees, grants, donations, and gifts from governments, local bodies, individuals, or bodies whether corporate or not (ESI Fund). For adjudication of disputes and claims, Employees Insurance Courts are being created. Provision for the recovery of contribution, penalty, and damages for default, prosecution, and punishment, etc., have also been provided.
The ever-expanding industrial horizon and reciprocal uprising of labor consciousness necessitate the employer and employee to be conversant with the current labor legislations that govern their relationship, rights, and obligations.
YOUR CONTRIBUTIONS ON THE TOPIC ARE HIGHLY APPRECIATED...
Regards
CRK
From India, Vijayawada
Some information on ESI -
--> In addition to necessities of food, clothing, housing etc., man needs security in times of physical and economic distress consequent upon sickness, disablement etc. The Employees’ State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees’ State Insurance Act and is designed to accomplish the task of protecting ‘employees’ as defined in the Employees’ State Insurance Act against the hazards of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families. The Scheme covers employees of non-seasonal power-using factories employing 10 or more persons. There is, however, a built-in provision for its extension to other establishments or classes of establishments, industrial, commercial, agricultural or otherwise. The Scheme has been progressively extended to cover employees in non-power using factories employing 20 or more persons and to commercial establishments.
--> The Employees’ State Insurance Scheme is administered by a corporate body called the Employees’ State Insurance Corporation (ESIC), which has members representing Employees, Employers, the Central Government, State Governments, Medical Profession and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation. The other bodies at the national level are the Standing Committee (a representative body of the Corporation) and the Medical Benefit Council, a specialized body which advises the Corporation on administration of Medical Benefit. At the Regional and Local levels, the Regional Boards and Local Committees have been constituted. There is, thus, an association of interests and interest groups at all levels.
ESIC is the trustee of the interests of the insured persons. It discharges its obligations and duties through a network of Regional Offices and Local Offices, Hospitals and Dispensaries spread over the entire country.
--> The Employees’ State Insurance Funds are primarily built out of employers contribution and employees contribution payable monthly as a fixed percentage of wages.
--> The Contribution is deposited by the Employer in cash or by cheque at the designated branches of some nationalized banks. The responsibility for payment of all contributions is that of the employer with a right to deduct the Employees’ share of contributions from employees’ wages relating to the period in respect of which the Contribution is payable.
--> Workers, covered under the ESI Act, are required to pay contribution towards the scheme on a monthly basis. A contribution period means a six-month time span from 1st April to 30th September and 1st October to 31st March. Thus, in a financial year there are two contribution periods of six months duration.
Cash benefits under the scheme are generally linked with contributions paid. The benefit period starts three months after the closure of a contribution period. The two types of periods are illucidated below: –
1st October to 31st March 1st July to 31st December
--> A network of Local Offices has been established by the Corporation in all implemented areas to disburse all claims for sickness, maternity, disablement and dependents’ benefit. The Local Office also answers all doubts and enquiries and assists otherwise in filling in claim forms and completing other action necessary in connection with the settlement of claims. These offices also interact with the employers of the area. The Local Offices are managed by a Manager and work under the direction and control of the Regional Offices.
--> The contribution condition required to be fulfilled for admissibility of sickness benefit during any benefit period is that contributions should have been paid in respect of an insured person in the corresponding contribution period for not less than 78 days.
--> Extended Sickness Benefit is a Cash Benefit paid for prolonged illness due to any of the 34 specified diseases as mentioned below.
Diseases
1. Tuberculosis
2. Leprosy
3. Chronic Emphysema
4. Bronchiectasis
5. Interstitial Lung disease
6. AIDS
7. Malignant Diseases
8. Diabetes Mellitus-with proliferate retinopathy/diabetic foot/ nephropathy.
9. Monoplegia
10. Hemiplegia
11. Paraplegia
12. Hemiparesis
13. Intracranial space occupying lesion
14. Spinal Cord Compression
15. Parkinson’s disease
16. Myasthenia Gravis/Neuromuscular Dystrophies
17. Immature Cataract with vision 6/60 or less
18. Detachment of Retina
19. Glaucoma
20. Coronary Artery Diseases
21. Congestive Heart Failure-Left, Right
22. Cardiac valvular Diseases with failure/complications
23. Cardiomyopathies
24. Heat disease with surgical intervention along with complications
25. Chronic Obstructive Long diseases (COPD) with congestive heart failure (Cor Pulmonale)
26. Cirrhosis of liver with ascitis/chronic active hepatitis (“CAH”)
27. Dislocation of vertebra/prolapse of intervertebral disc
28. Non union or delayed union of fracture
29. Post Traumatic surgical amputation of lower extremity
30. Compound fracture with chronic osteomyelitis
31. (a) Schizophrenia
(b)Endogenous depression
(c)Maniac Depressive Psychosis (MDP)
(d)Dementia
32.More than 20% Burns with infection/complication
33.Chronic Renal Failure
34.Reynaud’s disease/Burger’s disease.
In addition, extended sickness benefit may also be sanctioned by the prescribed authority, in case of any rare disease or special circumstances on the recommendation of the specified authority.
--> Except in case of disability from administration of drugs/injections, the insured person should have been in continuous employment for a period of 2 years and should have contributed for at least 156 days in 4 preceding contribution periods.
--> The daily rate of Extended Sickness Benefit is 40% more than the Standard Sickness Benefit rate admissible
Regards
CRK
From India, Vijayawada
--> In addition to necessities of food, clothing, housing etc., man needs security in times of physical and economic distress consequent upon sickness, disablement etc. The Employees’ State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees’ State Insurance Act and is designed to accomplish the task of protecting ‘employees’ as defined in the Employees’ State Insurance Act against the hazards of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families. The Scheme covers employees of non-seasonal power-using factories employing 10 or more persons. There is, however, a built-in provision for its extension to other establishments or classes of establishments, industrial, commercial, agricultural or otherwise. The Scheme has been progressively extended to cover employees in non-power using factories employing 20 or more persons and to commercial establishments.
--> The Employees’ State Insurance Scheme is administered by a corporate body called the Employees’ State Insurance Corporation (ESIC), which has members representing Employees, Employers, the Central Government, State Governments, Medical Profession and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation. The other bodies at the national level are the Standing Committee (a representative body of the Corporation) and the Medical Benefit Council, a specialized body which advises the Corporation on administration of Medical Benefit. At the Regional and Local levels, the Regional Boards and Local Committees have been constituted. There is, thus, an association of interests and interest groups at all levels.
ESIC is the trustee of the interests of the insured persons. It discharges its obligations and duties through a network of Regional Offices and Local Offices, Hospitals and Dispensaries spread over the entire country.
--> The Employees’ State Insurance Funds are primarily built out of employers contribution and employees contribution payable monthly as a fixed percentage of wages.
--> The Contribution is deposited by the Employer in cash or by cheque at the designated branches of some nationalized banks. The responsibility for payment of all contributions is that of the employer with a right to deduct the Employees’ share of contributions from employees’ wages relating to the period in respect of which the Contribution is payable.
--> Workers, covered under the ESI Act, are required to pay contribution towards the scheme on a monthly basis. A contribution period means a six-month time span from 1st April to 30th September and 1st October to 31st March. Thus, in a financial year there are two contribution periods of six months duration.
Cash benefits under the scheme are generally linked with contributions paid. The benefit period starts three months after the closure of a contribution period. The two types of periods are illucidated below: –
1st October to 31st March 1st July to 31st December
--> A network of Local Offices has been established by the Corporation in all implemented areas to disburse all claims for sickness, maternity, disablement and dependents’ benefit. The Local Office also answers all doubts and enquiries and assists otherwise in filling in claim forms and completing other action necessary in connection with the settlement of claims. These offices also interact with the employers of the area. The Local Offices are managed by a Manager and work under the direction and control of the Regional Offices.
--> The contribution condition required to be fulfilled for admissibility of sickness benefit during any benefit period is that contributions should have been paid in respect of an insured person in the corresponding contribution period for not less than 78 days.
--> Extended Sickness Benefit is a Cash Benefit paid for prolonged illness due to any of the 34 specified diseases as mentioned below.
Diseases
1. Tuberculosis
2. Leprosy
3. Chronic Emphysema
4. Bronchiectasis
5. Interstitial Lung disease
6. AIDS
7. Malignant Diseases
8. Diabetes Mellitus-with proliferate retinopathy/diabetic foot/ nephropathy.
9. Monoplegia
10. Hemiplegia
11. Paraplegia
12. Hemiparesis
13. Intracranial space occupying lesion
14. Spinal Cord Compression
15. Parkinson’s disease
16. Myasthenia Gravis/Neuromuscular Dystrophies
17. Immature Cataract with vision 6/60 or less
18. Detachment of Retina
19. Glaucoma
20. Coronary Artery Diseases
21. Congestive Heart Failure-Left, Right
22. Cardiac valvular Diseases with failure/complications
23. Cardiomyopathies
24. Heat disease with surgical intervention along with complications
25. Chronic Obstructive Long diseases (COPD) with congestive heart failure (Cor Pulmonale)
26. Cirrhosis of liver with ascitis/chronic active hepatitis (“CAH”)
27. Dislocation of vertebra/prolapse of intervertebral disc
28. Non union or delayed union of fracture
29. Post Traumatic surgical amputation of lower extremity
30. Compound fracture with chronic osteomyelitis
31. (a) Schizophrenia
(b)Endogenous depression
(c)Maniac Depressive Psychosis (MDP)
(d)Dementia
32.More than 20% Burns with infection/complication
33.Chronic Renal Failure
34.Reynaud’s disease/Burger’s disease.
In addition, extended sickness benefit may also be sanctioned by the prescribed authority, in case of any rare disease or special circumstances on the recommendation of the specified authority.
--> Except in case of disability from administration of drugs/injections, the insured person should have been in continuous employment for a period of 2 years and should have contributed for at least 156 days in 4 preceding contribution periods.
--> The daily rate of Extended Sickness Benefit is 40% more than the Standard Sickness Benefit rate admissible
Regards
CRK
From India, Vijayawada
Your postings are highly appreciable. I am quite happy to see you having such good information about ESI. Keep on sharing the knowledge.
Don't be disappointed by no response; nowadays, many people are misusing this forum without contributing.
In addition to the information you shared, the main change in ESI in the next few months is that it's going to be fully computerized for better service to its stakeholders. For Insured Persons, ESIC is providing a smart card to the employee and their family to access any dispensary or hospital throughout India. Employers will be allowed to submit their returns and forms online.
Furthermore, the dream of poor workers is coming to reality - seeing their kids become doctors with admission to ESI established Medical Institutions.
Best wishes.
From India, Hyderabad
Don't be disappointed by no response; nowadays, many people are misusing this forum without contributing.
In addition to the information you shared, the main change in ESI in the next few months is that it's going to be fully computerized for better service to its stakeholders. For Insured Persons, ESIC is providing a smart card to the employee and their family to access any dispensary or hospital throughout India. Employers will be allowed to submit their returns and forms online.
Furthermore, the dream of poor workers is coming to reality - seeing their kids become doctors with admission to ESI established Medical Institutions.
Best wishes.
From India, Hyderabad
Hi, everybody!
Very good and useful information furnished by Mr. CRk. But it's quite surprising that nobody had responded to it. I request all of you to kindly participate actively in the discussion and share your knowledge with others. You may kindly post your doubts, clarifications required, or procedural aspects and latest developments/amendments about ESI. Let us help each other in knowing more about ESI so that the employers know their obligations and employees covered under the scheme understand the benefits admissible to them, to make it more meaningful to achieve its object.
K.V. Ramana Murty, Deputy Director (Rtd.), ESIC, Hyderabad
From India, Hyderabad
Very good and useful information furnished by Mr. CRk. But it's quite surprising that nobody had responded to it. I request all of you to kindly participate actively in the discussion and share your knowledge with others. You may kindly post your doubts, clarifications required, or procedural aspects and latest developments/amendments about ESI. Let us help each other in knowing more about ESI so that the employers know their obligations and employees covered under the scheme understand the benefits admissible to them, to make it more meaningful to achieve its object.
K.V. Ramana Murty, Deputy Director (Rtd.), ESIC, Hyderabad
From India, Hyderabad
Dear Seniors,
I had earlier posted a question on ESI contributions in which I had some doubts. My query is whether an advance bonus and ex-gratia that an X company pays to its employees as part of the salary can attract ESI contributions, or if, like the washing allowance, an exemption is given to this component.
Regards,
Mohan
From India, Mumbai
I had earlier posted a question on ESI contributions in which I had some doubts. My query is whether an advance bonus and ex-gratia that an X company pays to its employees as part of the salary can attract ESI contributions, or if, like the washing allowance, an exemption is given to this component.
Regards,
Mohan
From India, Mumbai
For the benefit of all the members connected with ESI, I am giving below a detailed explanation about the wages and its interpretation. Suggestions and further discussion are welcome.
The term 'wages' under Section 2(22) of the ESI Act has been divided into four parts as follows:
1. All remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled;
2. and includes any payment to an employee in respect of any period of authorized leave, lockout, strike which is not illegal or lay off;
3. and other additional remuneration, if any paid at intervals not exceeding two months;
4. but does not include:-
a) any contribution paid by the employer to any pension fund or provident fund, or under this Act;
b) any traveling allowance or the value of any travel concession;
c) any sum paid to the person employed to defray the special expenses entitled to him by the nature of his employment; or
d) any gratuity payable on discharge.
Each part is explained below.
Part I
1. The remuneration must be in 'cash' and not in 'kind'.
2. It need not necessarily be paid. It is sufficient that it is accrued and payable. An employee may leave the employment in the middle of a month without receiving his wages for the period he worked. Though the salary was not paid to him, contribution is due on it as the salary has accrued to him and is payable.
3. There is no periodicity or duration. Salary paid once in a quarter or annually is also thus wages.
4. The remuneration must be in terms of the contract of employment. It may be oral or written. Thus, an offer of appointment specifying the nature of the job and quantum of wages admissible to an employee or an agreement between the employer and the employees' union/Association, whether orally agreed to or reduced to writing can be termed as the contract of employment. The standard rules of the company regulating the pay structure and other fringe benefits binding on the employee are also a contract of employment. Normally, the following items come under this category.
a) Basic Pay, Wages, Salary;
b) D.A./HRA/CCA/Overtime/officiating allowance/Night shift allowance/efficiency allowance/Heat, Gas, Dust allowance/Education allowance/Food & Tea allowance/conveyance allowance etc;
c) Wages/salary/pay for weekly off and public holidays;
d) Commission paid to sales staff;
e) Subsistence allowance paid to an employee during the period of suspension;
f) Attendance Bonus or incentive or ex gratia in lieu of Attendance Bonus or production incentive;
g) Regular Honorarium or salary or remuneration paid to a Director;
h) Collection Batta paid to running staff.
This list is only illustrative and not exhaustive.
Part II:
The second category includes any payment actually made for:
a) Authorized Leave, b) Lock-out, c) Lay-off, and d) Legal strike.
Thus, in the case of 'salary', contribution is due even though the salary is not actually disbursed to the employee. But, in the case of 'leave salary' or any other items of wages shown above, contribution becomes due only when it is actually paid to the employee and not otherwise.
In a case where an employee worked for the first 15 days of a month and proceeded on authorized leave for the remaining 15 days. But he did not return back and left the service, without receiving the wages for that month. In this case, the first 15 days fall under the first category. Therefore contribution is payable even though 'salary' was not disbursed to the employee. No contribution needs to be paid on the leave wages for the second 15 days, as the leave salary was actually not disbursed to the employee. Contribution is due on the leave wages as and when it is actually disbursed to the employee.
Lay-off compensation might have been paid to an employee after the lay-off is lifted or after a considerable time. The contribution is then payable within 21 days of the expiry of the calendar month in which the lay-off compensation has actually been disbursed to the employee. Similar is the case with wages for the strike period.
Part III:
This part deals with 'any additional remuneration' that is not covered under part I and II, and also not covered by any service condition or terms of the contract of employment. This additional remuneration must also be actually paid, and the duration between each such payment should not exceed 'two months'. Normally, no payment is termed as additional remuneration which is not forming part of the service condition or without inclusion in the terms of the contract of employment. Where the employer pays this kind of remuneration on his own will and pleasure without any 'right' on the part of the employee to claim its continuance or regular payment, and the employer has the 'right' to withdraw, modify, alter, or revise the scheme of payment, comes under this category. Production incentive paid by the employer quarterly at his option, without any agreement with the employees comes under this category, and was held as 'not wages' by the Supreme Court in the case of M/s Whirlpool India Ltd. vs. ESIC in civil Appeal No. 1903 of 2000.
Part IV:
Deals with exclusions of employers' share of PF/ESI Contribution, traveling allowance, washing allowance, gratuity, etc.
The following items are treated as 'not wages':
1. Salary drawn by the proprietor, Partners, and the contractor himself;
2. Daily allowance paid to running staff;
3. Reimbursement of the actual cost of conveyance for coming to work and going back on the production of tickets or season ticket or bus pass subject to proof of actual expenditure;
4. Washing allowance if dress is provided by the Employer;
5. Cycle allowance, if the cycle is used for official purposes;
6. Shoe allowance for polishing the shoes, if the shoe is supplied;
7. Service charges collected by the Hotel management on behalf of their employees in lieu of direct tips and the same is paid to the employees at a later date. (M/s Rambagh palace Hotel, Jaipur, vs. ESIC)
8. Annual Bonus; (But if this bonus is paid every month, it is considered as wages. In the case of Beedi establishments, 8.33 percent of wages is paid every month as a bonus, which is considered as wages)
9. Annual sales commission;
10. Payments made for Annual/periodical service contracts;
11. Commission paid to dealers/agents;
12. Payments made to Labour consultants, Lawyers, Engineers, Counsels, chartered Accountants;
13. Encashment of un-availed leave;
14. Inam or incentive paid at an interval exceeding two months in the absence of any agreement or contract and the employer has got the right to revise or withdraw it at his will;
This list is not exhaustive but only suggestive.
Why all allowances are to be included?
The cash benefits payable to an employee are always a percentage of wages he could have earned. An employee who loses his wages during his abstention from work due to sickness, disablement, etc. is expected to get cash compensation proportionate to the total wages and allowances he would have received had he been working during this period. It is, therefore, necessary to include all allowances for the purpose of wages and payment of contribution. If the contribution is confined to only basic wages, the cash benefits would be too low, to subsist the employee himself. It also tempts the employers to keep the basic wages to the barest minimum and show the balance as a package of various allowances, to avoid their share of contribution, but the employee is put to loss when he receives the cash benefit at a lower rate.
Why overtime should be included in wages for payment of contribution but not for deciding coverage of an employee?
Overtime is not a regular and continuous payment, but it is of an occasional nature. If overtime is also taken for the wage limit for the coverage of an employee, he may be going out of coverage for some time and again coming within the orbit of the scheme when overtime is not there. This frequent interruption from the scheme deprives him of the benefits admissible under the scheme even after making a payment of contribution for part of a contribution period. To ensure continued security and protection, overtime is excluded for determining the wage ceiling for the coverage of an employee. However, it is included for the payment of contribution to cover the accident risk during the period he was on overtime work, and to enable him to draw the cash benefits at an enhanced rate, as by adding overtime wages to his average daily wages, he is fitted into the next higher slab in the Standard Benefit rate table in Rule 54 for claiming cash benefits.
Why the contribution should be paid on the total wages beyond the wage ceiling limit when an employee crosses the wage limit prescribed by the Central Government? (The present limit is Rs. 15,000/- from 01-5-2010)
An employee whose wages (excluding O.T.) cross the prescribed ceiling limit in any month at any time after the commencement of the contribution period continue to be an employee till the end of that contribution period. Though there is a wage ceiling limit for the coverage of an employee, there is no ceiling limit in the definition of wages for payment of contribution. Hence contribution is payable on the total wages without any ceiling limit. As the cash benefit is regulated on the average daily wages in a contribution period, such an employee gets fitted into a higher wage slab in the standard benefit table in view of the payment of contribution on the total wages. Now, there are 99 wage groups in the standard rate table, and the maximum daily standard benefit rate is Rs. 480/ Wage period related to an employee is the period in respect of which wages are ordinarily
From India, Hyderabad
The term 'wages' under Section 2(22) of the ESI Act has been divided into four parts as follows:
1. All remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled;
2. and includes any payment to an employee in respect of any period of authorized leave, lockout, strike which is not illegal or lay off;
3. and other additional remuneration, if any paid at intervals not exceeding two months;
4. but does not include:-
a) any contribution paid by the employer to any pension fund or provident fund, or under this Act;
b) any traveling allowance or the value of any travel concession;
c) any sum paid to the person employed to defray the special expenses entitled to him by the nature of his employment; or
d) any gratuity payable on discharge.
Each part is explained below.
Part I
1. The remuneration must be in 'cash' and not in 'kind'.
2. It need not necessarily be paid. It is sufficient that it is accrued and payable. An employee may leave the employment in the middle of a month without receiving his wages for the period he worked. Though the salary was not paid to him, contribution is due on it as the salary has accrued to him and is payable.
3. There is no periodicity or duration. Salary paid once in a quarter or annually is also thus wages.
4. The remuneration must be in terms of the contract of employment. It may be oral or written. Thus, an offer of appointment specifying the nature of the job and quantum of wages admissible to an employee or an agreement between the employer and the employees' union/Association, whether orally agreed to or reduced to writing can be termed as the contract of employment. The standard rules of the company regulating the pay structure and other fringe benefits binding on the employee are also a contract of employment. Normally, the following items come under this category.
a) Basic Pay, Wages, Salary;
b) D.A./HRA/CCA/Overtime/officiating allowance/Night shift allowance/efficiency allowance/Heat, Gas, Dust allowance/Education allowance/Food & Tea allowance/conveyance allowance etc;
c) Wages/salary/pay for weekly off and public holidays;
d) Commission paid to sales staff;
e) Subsistence allowance paid to an employee during the period of suspension;
f) Attendance Bonus or incentive or ex gratia in lieu of Attendance Bonus or production incentive;
g) Regular Honorarium or salary or remuneration paid to a Director;
h) Collection Batta paid to running staff.
This list is only illustrative and not exhaustive.
Part II:
The second category includes any payment actually made for:
a) Authorized Leave, b) Lock-out, c) Lay-off, and d) Legal strike.
Thus, in the case of 'salary', contribution is due even though the salary is not actually disbursed to the employee. But, in the case of 'leave salary' or any other items of wages shown above, contribution becomes due only when it is actually paid to the employee and not otherwise.
In a case where an employee worked for the first 15 days of a month and proceeded on authorized leave for the remaining 15 days. But he did not return back and left the service, without receiving the wages for that month. In this case, the first 15 days fall under the first category. Therefore contribution is payable even though 'salary' was not disbursed to the employee. No contribution needs to be paid on the leave wages for the second 15 days, as the leave salary was actually not disbursed to the employee. Contribution is due on the leave wages as and when it is actually disbursed to the employee.
Lay-off compensation might have been paid to an employee after the lay-off is lifted or after a considerable time. The contribution is then payable within 21 days of the expiry of the calendar month in which the lay-off compensation has actually been disbursed to the employee. Similar is the case with wages for the strike period.
Part III:
This part deals with 'any additional remuneration' that is not covered under part I and II, and also not covered by any service condition or terms of the contract of employment. This additional remuneration must also be actually paid, and the duration between each such payment should not exceed 'two months'. Normally, no payment is termed as additional remuneration which is not forming part of the service condition or without inclusion in the terms of the contract of employment. Where the employer pays this kind of remuneration on his own will and pleasure without any 'right' on the part of the employee to claim its continuance or regular payment, and the employer has the 'right' to withdraw, modify, alter, or revise the scheme of payment, comes under this category. Production incentive paid by the employer quarterly at his option, without any agreement with the employees comes under this category, and was held as 'not wages' by the Supreme Court in the case of M/s Whirlpool India Ltd. vs. ESIC in civil Appeal No. 1903 of 2000.
Part IV:
Deals with exclusions of employers' share of PF/ESI Contribution, traveling allowance, washing allowance, gratuity, etc.
The following items are treated as 'not wages':
1. Salary drawn by the proprietor, Partners, and the contractor himself;
2. Daily allowance paid to running staff;
3. Reimbursement of the actual cost of conveyance for coming to work and going back on the production of tickets or season ticket or bus pass subject to proof of actual expenditure;
4. Washing allowance if dress is provided by the Employer;
5. Cycle allowance, if the cycle is used for official purposes;
6. Shoe allowance for polishing the shoes, if the shoe is supplied;
7. Service charges collected by the Hotel management on behalf of their employees in lieu of direct tips and the same is paid to the employees at a later date. (M/s Rambagh palace Hotel, Jaipur, vs. ESIC)
8. Annual Bonus; (But if this bonus is paid every month, it is considered as wages. In the case of Beedi establishments, 8.33 percent of wages is paid every month as a bonus, which is considered as wages)
9. Annual sales commission;
10. Payments made for Annual/periodical service contracts;
11. Commission paid to dealers/agents;
12. Payments made to Labour consultants, Lawyers, Engineers, Counsels, chartered Accountants;
13. Encashment of un-availed leave;
14. Inam or incentive paid at an interval exceeding two months in the absence of any agreement or contract and the employer has got the right to revise or withdraw it at his will;
This list is not exhaustive but only suggestive.
Why all allowances are to be included?
The cash benefits payable to an employee are always a percentage of wages he could have earned. An employee who loses his wages during his abstention from work due to sickness, disablement, etc. is expected to get cash compensation proportionate to the total wages and allowances he would have received had he been working during this period. It is, therefore, necessary to include all allowances for the purpose of wages and payment of contribution. If the contribution is confined to only basic wages, the cash benefits would be too low, to subsist the employee himself. It also tempts the employers to keep the basic wages to the barest minimum and show the balance as a package of various allowances, to avoid their share of contribution, but the employee is put to loss when he receives the cash benefit at a lower rate.
Why overtime should be included in wages for payment of contribution but not for deciding coverage of an employee?
Overtime is not a regular and continuous payment, but it is of an occasional nature. If overtime is also taken for the wage limit for the coverage of an employee, he may be going out of coverage for some time and again coming within the orbit of the scheme when overtime is not there. This frequent interruption from the scheme deprives him of the benefits admissible under the scheme even after making a payment of contribution for part of a contribution period. To ensure continued security and protection, overtime is excluded for determining the wage ceiling for the coverage of an employee. However, it is included for the payment of contribution to cover the accident risk during the period he was on overtime work, and to enable him to draw the cash benefits at an enhanced rate, as by adding overtime wages to his average daily wages, he is fitted into the next higher slab in the Standard Benefit rate table in Rule 54 for claiming cash benefits.
Why the contribution should be paid on the total wages beyond the wage ceiling limit when an employee crosses the wage limit prescribed by the Central Government? (The present limit is Rs. 15,000/- from 01-5-2010)
An employee whose wages (excluding O.T.) cross the prescribed ceiling limit in any month at any time after the commencement of the contribution period continue to be an employee till the end of that contribution period. Though there is a wage ceiling limit for the coverage of an employee, there is no ceiling limit in the definition of wages for payment of contribution. Hence contribution is payable on the total wages without any ceiling limit. As the cash benefit is regulated on the average daily wages in a contribution period, such an employee gets fitted into a higher wage slab in the standard benefit table in view of the payment of contribution on the total wages. Now, there are 99 wage groups in the standard rate table, and the maximum daily standard benefit rate is Rs. 480/ Wage period related to an employee is the period in respect of which wages are ordinarily
From India, Hyderabad
Dear Seniors,
Please share your views on the following points:
1. Once the establishment is covered, its branch office automatically comes under ESIC compliance bracket. However, in certain regions where ESIC facilities or dispensaries do not exist where the company employees are working, how can we provide benefits through this scheme to those employees? Is there any exemption for compliance?
2. Company X is registered under ESIC. The nature of work of Company X is to supply manpower to various companies across India. Company X does its compliance from the head office. It has taken a sub-code where manpower is supplied. However, in some districts, it has not taken a sub-code and is sending a copy of RC half-yearly regularly to those districts without obtaining the sub-code number for the employees working there. The insurance numbers are obtained from the adjacent district.
My question is: Can Company X's employees who are deployed in those districts avail the ESIC benefits if the IP Insurance Number is obtained from the adjacent district's ESI office?
Your suggestions would be highly appreciated.
Regards,
Mohan
From India, Mumbai
Please share your views on the following points:
1. Once the establishment is covered, its branch office automatically comes under ESIC compliance bracket. However, in certain regions where ESIC facilities or dispensaries do not exist where the company employees are working, how can we provide benefits through this scheme to those employees? Is there any exemption for compliance?
2. Company X is registered under ESIC. The nature of work of Company X is to supply manpower to various companies across India. Company X does its compliance from the head office. It has taken a sub-code where manpower is supplied. However, in some districts, it has not taken a sub-code and is sending a copy of RC half-yearly regularly to those districts without obtaining the sub-code number for the employees working there. The insurance numbers are obtained from the adjacent district.
My question is: Can Company X's employees who are deployed in those districts avail the ESIC benefits if the IP Insurance Number is obtained from the adjacent district's ESI office?
Your suggestions would be highly appreciated.
Regards,
Mohan
From India, Mumbai
Dear kvrm2002,
We know that ESI contribution is payable for OT (overtime). This item is variable and depends on various factors. So, as you rightly said, it cannot be added to total wages for exempting an employee from coverage.
Similarly, some companies, preferably sales-related businesses, and retail showrooms give "Incentive" monthly based on reaching the targets.
My doubts are:
1. My doubt is whether "Incentive" can be treated in the same analogy as that of "OT"?
2. In case if it is a part of remuneration, whether an employee becomes exempted by adding the incentive to his gross payroll salary?
3. Also, suppose an employee is exempted at the start of the contribution period April, becomes coverable due to fall in incentive earnings in May, becomes coverable until the end of the contribution period, i.e., up to Sept. Suppose his June salary is 25000 inclusive of the incentive. Then whether contribution is payable on the entire 25000 or up to the max ceiling, i.e., 15000?
4. If the Corporation is insisting on the payment of contribution on the entire salary (inclusive of incentive). In what way does the corporation justify its stand, since the highest benefit is capped on the basis of the average salary earned by a 15000 earning guy? So, the employee stands to lose on paying contribution for Rs 25000 whereas he gets the same benefit as that of the employee earning 15000 pm?
Sir, please clear my long-pending doubts.
Ramesh, Chennai
From India, Madras
We know that ESI contribution is payable for OT (overtime). This item is variable and depends on various factors. So, as you rightly said, it cannot be added to total wages for exempting an employee from coverage.
Similarly, some companies, preferably sales-related businesses, and retail showrooms give "Incentive" monthly based on reaching the targets.
My doubts are:
1. My doubt is whether "Incentive" can be treated in the same analogy as that of "OT"?
2. In case if it is a part of remuneration, whether an employee becomes exempted by adding the incentive to his gross payroll salary?
3. Also, suppose an employee is exempted at the start of the contribution period April, becomes coverable due to fall in incentive earnings in May, becomes coverable until the end of the contribution period, i.e., up to Sept. Suppose his June salary is 25000 inclusive of the incentive. Then whether contribution is payable on the entire 25000 or up to the max ceiling, i.e., 15000?
4. If the Corporation is insisting on the payment of contribution on the entire salary (inclusive of incentive). In what way does the corporation justify its stand, since the highest benefit is capped on the basis of the average salary earned by a 15000 earning guy? So, the employee stands to lose on paying contribution for Rs 25000 whereas he gets the same benefit as that of the employee earning 15000 pm?
Sir, please clear my long-pending doubts.
Ramesh, Chennai
From India, Madras
Dear Ramesh,
1. Incentive cannot be treated in the same analogy as that of O.T.
2. O.T. is exempted for wage ceiling in the Act itself under the proviso to the definition of 'employee'. Therefore, we are going by the provisions of the said definition for O.T.
3. If by adding 'incentive', the employee crosses the ceiling limit, he stands exempted after the end of the relevant contribution period.
4. As and when there is no incentive, he is to be recovered and to be continued until the end of the relevant contribution period.
5. There is a ceiling for the coverage of an employee. But there is no such ceiling in the definition of wages. If you read the definition, it starts with "All remuneration paid or payable to an employee..."
A person drawing 25,000/- in the middle of a contribution period is also an employee until the end of that contribution period. Therefore, all remuneration paid or payable is wages, and therefore, the contribution is payable on the entire amount and not to be restricted to 15,000/-
6. As regards the payment of cash benefits, the 'Standard benefit rate table' in Rule 54 contains 99 wage slabs to cover the wages of an employee up to Rs. 25,000/- (which is the coverage limit for an employee with a disability). The maximum daily standard benefit rate is 480/-. If an employee gets sickness benefits for 30 days @480/-, it works out to 14,400/-. So, the benefit is not restricted to the wages of Rs. 15,000/- as presumed by you.
Hope this clarifies everything.
You are welcome to contact me via email at kvrm2002@yahoo.co.in for any doubts or clarifications.
From India, Hyderabad
1. Incentive cannot be treated in the same analogy as that of O.T.
2. O.T. is exempted for wage ceiling in the Act itself under the proviso to the definition of 'employee'. Therefore, we are going by the provisions of the said definition for O.T.
3. If by adding 'incentive', the employee crosses the ceiling limit, he stands exempted after the end of the relevant contribution period.
4. As and when there is no incentive, he is to be recovered and to be continued until the end of the relevant contribution period.
5. There is a ceiling for the coverage of an employee. But there is no such ceiling in the definition of wages. If you read the definition, it starts with "All remuneration paid or payable to an employee..."
A person drawing 25,000/- in the middle of a contribution period is also an employee until the end of that contribution period. Therefore, all remuneration paid or payable is wages, and therefore, the contribution is payable on the entire amount and not to be restricted to 15,000/-
6. As regards the payment of cash benefits, the 'Standard benefit rate table' in Rule 54 contains 99 wage slabs to cover the wages of an employee up to Rs. 25,000/- (which is the coverage limit for an employee with a disability). The maximum daily standard benefit rate is 480/-. If an employee gets sickness benefits for 30 days @480/-, it works out to 14,400/-. So, the benefit is not restricted to the wages of Rs. 15,000/- as presumed by you.
Hope this clarifies everything.
You are welcome to contact me via email at kvrm2002@yahoo.co.in for any doubts or clarifications.
From India, Hyderabad
Dear ESIC Knowledgeable ones,
I hope that after such a great policy on ESIC by the government, it would have also put some insight into the kind of hospitals and facilities available in practice. Without having proper hygienic hospitals, skilled doctors who should be available, proper treatment facilities on demand, what would be the use of having a great policy on paper? People want good facilities, not well-worded policies. The ESIC hospital facts are not hidden to anyone. In fact, employees have protested for raising the limit to Rs 15,000 because they don't want to contribute from their salaries for pathetic facilities. Even after the deductions, people would prefer paying private practitioners or hospitals rather than visiting hospitals under ESIC.
The groundwork on ESIC should have been completed, i.e., ensuring stringent rules for hospitals to qualify for ESIC. Over here, we have every Tom, Dick, and Harry hospital applying for ESIC and making it to the grade too. Four-bedded nursing homes with no regular doctors have made it to the grade of ESIC. What more should one say? Patriotism is very appreciated but not at the cost of ill-planned, irresponsible policies. Just because it involves the common man, it's such. Tell me, how many of the political leaders, bureaucrats would opt for getting treated in such ESIC hospitals? Unless they apply the rules for themselves, why do they want filthy services for the common man, that too at a contribution from the common man himself? Thinking positively is one thing, and thinking practically is another. All that can be said is "NOT ENOUGH DONE."
Regards
From India, Mumbai
I hope that after such a great policy on ESIC by the government, it would have also put some insight into the kind of hospitals and facilities available in practice. Without having proper hygienic hospitals, skilled doctors who should be available, proper treatment facilities on demand, what would be the use of having a great policy on paper? People want good facilities, not well-worded policies. The ESIC hospital facts are not hidden to anyone. In fact, employees have protested for raising the limit to Rs 15,000 because they don't want to contribute from their salaries for pathetic facilities. Even after the deductions, people would prefer paying private practitioners or hospitals rather than visiting hospitals under ESIC.
The groundwork on ESIC should have been completed, i.e., ensuring stringent rules for hospitals to qualify for ESIC. Over here, we have every Tom, Dick, and Harry hospital applying for ESIC and making it to the grade too. Four-bedded nursing homes with no regular doctors have made it to the grade of ESIC. What more should one say? Patriotism is very appreciated but not at the cost of ill-planned, irresponsible policies. Just because it involves the common man, it's such. Tell me, how many of the political leaders, bureaucrats would opt for getting treated in such ESIC hospitals? Unless they apply the rules for themselves, why do they want filthy services for the common man, that too at a contribution from the common man himself? Thinking positively is one thing, and thinking practically is another. All that can be said is "NOT ENOUGH DONE."
Regards
From India, Mumbai
Re: ESI Act - Inviting Discussions
Dear Seniors,
Thank you for the valuable information provided on ESIC.
I have a query. I work in a company with 400 employees all over India. In Mumbai, there are 60 employees, out of which only 7 are under ESIC.
Recently, a female who is under ESIC has conceived a child. Her maternity leave of 84 days started from the day after she conceived, as she conceived on the day after attending the office.
I understand that the wages are paid through ESIC and not by the employer when on maternity leave. What are the obligations of the employer here then?
This is my first-time experience and I would appreciate your valuable suggestions on the same. Please guide.
Regards,
Swati
From India, Pune
Dear Seniors,
Thank you for the valuable information provided on ESIC.
I have a query. I work in a company with 400 employees all over India. In Mumbai, there are 60 employees, out of which only 7 are under ESIC.
Recently, a female who is under ESIC has conceived a child. Her maternity leave of 84 days started from the day after she conceived, as she conceived on the day after attending the office.
I understand that the wages are paid through ESIC and not by the employer when on maternity leave. What are the obligations of the employer here then?
This is my first-time experience and I would appreciate your valuable suggestions on the same. Please guide.
Regards,
Swati
From India, Pune
Dear ESIC Knowledgeable ones,
I hope that after such a great policy on ESIC by the government, it would have also put some insight into the kind of hospitals and facilities available in practice. Without having proper hygienic hospitals, skilled doctors who should be available, proper treatment facilities on demand, etc., what would be the use of having a great policy on paper? People want good facilities and not well-worded policies. The ESIC hospital facts are not hidden to anyone. In fact, employees have protested for raising the limit to Rs 15,000 because they don't want to contribute from their salaries for pathetic facilities. Even after the deductions, people would prefer paying private practitioners or hospitals rather than visiting hospitals under ESIC. The groundwork on ESIC should have been completed, i.e., ensuring stringent rules for hospitals to qualify for ESIC. Over here, we have every Tom, Dick, and Harry hospital applying for ESIC and making it to the grade too. Four-bedded nursing homes with no regular doctors have made it to the grade of ESIC. What more should one say? Patriotism is appreciated, but not at the cost of ill-planned, irresponsible policies. Just because it involves the common man, it's such. Tell me, how many of the political leaders or bureaucrats would opt for getting treated in such ESIC Hospitals? Unless they apply the rules for themselves, why do they want filthy services for the common man, that too at a contribution from the common man himself? Thinking positively is one thing, and thinking practically is another. All that can be said is "NOT ENOUGH DONE."
Regards
From India, Mumbai
I hope that after such a great policy on ESIC by the government, it would have also put some insight into the kind of hospitals and facilities available in practice. Without having proper hygienic hospitals, skilled doctors who should be available, proper treatment facilities on demand, etc., what would be the use of having a great policy on paper? People want good facilities and not well-worded policies. The ESIC hospital facts are not hidden to anyone. In fact, employees have protested for raising the limit to Rs 15,000 because they don't want to contribute from their salaries for pathetic facilities. Even after the deductions, people would prefer paying private practitioners or hospitals rather than visiting hospitals under ESIC. The groundwork on ESIC should have been completed, i.e., ensuring stringent rules for hospitals to qualify for ESIC. Over here, we have every Tom, Dick, and Harry hospital applying for ESIC and making it to the grade too. Four-bedded nursing homes with no regular doctors have made it to the grade of ESIC. What more should one say? Patriotism is appreciated, but not at the cost of ill-planned, irresponsible policies. Just because it involves the common man, it's such. Tell me, how many of the political leaders or bureaucrats would opt for getting treated in such ESIC Hospitals? Unless they apply the rules for themselves, why do they want filthy services for the common man, that too at a contribution from the common man himself? Thinking positively is one thing, and thinking practically is another. All that can be said is "NOT ENOUGH DONE."
Regards
From India, Mumbai
Great 28677c5420521383353edc6e6 (One of the ESIC knowledgeable ones).........
Think you have good social consciousness. It's highly appreciated. But instead of pointing out and blaming the system or processes, it would be better to take the initiative to work on the issue, gather valid proofs, and present them through the proper channels. This should prompt action from the concerned officers, departments, politicians, and parties. However, we don't do this because it's not our duty, right? It's not "NOT ENOUGH DONE" - it's the people, i.e., we who should make it happen.
CRK
Dear ESIC knowledgeable ones,
I hope that after such a great policy on ESIC by the government, there would also be insight into the kind of hospitals and facilities available in practice. Without proper hygienic hospitals, skilled doctors, and adequate treatment facilities on demand, what is the use of having a great policy on paper? People want good facilities, not just well-worded policies. The ESIC hospital facts are not hidden; employees have protested to raise the limit to Rs 15,000 because they don't want to contribute from their salaries for poor facilities. Even after deductions, people prefer paying private practitioners or hospitals over visiting ESIC hospitals. The groundwork on ESIC should have been completed, ensuring stringent rules for hospitals to qualify for ESIC. Many hospitals, including four-bedded nursing homes with no regular doctors, have made it to the ESIC grade. Patriotism is appreciated, but not at the cost of ill-planned, irresponsible policies. How many political leaders or bureaucrats would choose to be treated in ESIC hospitals? Unless they apply the rules for themselves, why do they accept subpar services for the common man, especially at a cost borne by the common man? Thinking positively is one thing, while thinking practically is another. All that can be said is "NOT ENOUGH DONE." Regards
From India, Vijayawada
Think you have good social consciousness. It's highly appreciated. But instead of pointing out and blaming the system or processes, it would be better to take the initiative to work on the issue, gather valid proofs, and present them through the proper channels. This should prompt action from the concerned officers, departments, politicians, and parties. However, we don't do this because it's not our duty, right? It's not "NOT ENOUGH DONE" - it's the people, i.e., we who should make it happen.
CRK
Dear ESIC knowledgeable ones,
I hope that after such a great policy on ESIC by the government, there would also be insight into the kind of hospitals and facilities available in practice. Without proper hygienic hospitals, skilled doctors, and adequate treatment facilities on demand, what is the use of having a great policy on paper? People want good facilities, not just well-worded policies. The ESIC hospital facts are not hidden; employees have protested to raise the limit to Rs 15,000 because they don't want to contribute from their salaries for poor facilities. Even after deductions, people prefer paying private practitioners or hospitals over visiting ESIC hospitals. The groundwork on ESIC should have been completed, ensuring stringent rules for hospitals to qualify for ESIC. Many hospitals, including four-bedded nursing homes with no regular doctors, have made it to the ESIC grade. Patriotism is appreciated, but not at the cost of ill-planned, irresponsible policies. How many political leaders or bureaucrats would choose to be treated in ESIC hospitals? Unless they apply the rules for themselves, why do they accept subpar services for the common man, especially at a cost borne by the common man? Thinking positively is one thing, while thinking practically is another. All that can be said is "NOT ENOUGH DONE." Regards
From India, Vijayawada
GREATEST CRK.MBA. (...FILL THE BLANKS...)
Mr. V SYAM PRASAD (THE ESIC INSPECTOR), WHO HAS COMMENTED IN THIS POST, HAS ALREADY ACKNOWLEDGED THIS DRAWBACK OF NOT ENOUGH DENOVO ON ESIC IN A SIMILAR POST WHERE I HAD POSTED MY SIMILAR VIEWS. IF YOU ASK WHY WE, COMMON MEN, DON'T ROUTE THROUGH PROPER CHANNELS TO POLITICAL LEADERS, CONCERNED OFFICERS, AND THE REST... BECAUSE IT'S OF NO USE. ALL THIS HOGWASH THAT PEOPLE SHOULD BRING TO NOTICE, PROTEST, ETC., IS OF NO USE IN OUR COUNTRY. YOU CAN BE THE BILLIONTH ONE TO TRY IT IF YOU DON'T BELIEVE ME. ROUTE YOUR CONCERN THROUGH PROPER CHANNELS AND LET ME KNOW WHAT RESULTS YOU GOT. ...AND MOREOVER, MY POST IS NOT AGAINST YOU OR YOUR KNOWLEDGE BASE ON ESIC... MY POST IS ABOUT WHAT EMPLOYEES THINK ABOUT IT. I AM DOING MY BIT BY POSTING IT AS A MATTER OF CONCERN TO THE CONCERNED ESIC AUTHORITY WITH HIS ACKNOWLEDGEMENT OF MY VIEWS IN MY EARLIER POST AND A PROMISE FROM HIM THAT HE WOULD LOOK INTO THE MATTER... AND LOOKING INTO MATTERS ALSO TAKES AGES IN OUR COUNTRY... AND THIS ISN'T AN OVERNIGHT OPINION... POST-INDEPENDENCE POLICIES ARE A PROOF OF IT, WHICH YOU CAN VERY WELL RESEARCH AS THIS WON'T BE AN IDEAL PLACE TO POST THEM. ONCE AGAIN, DON'T TAKE IT PERSONAL... THIS IS NOT FOR YOU... THIS IS ABOUT AGGRIEVED EMPLOYEES WHO ARE CONCERNED ABOUT SALARY CUTS AND DON'T WANT THIS OPTION OR WANT A BETTER OPTION... HOPE YOU UNDERSTAND... REGARDS
From India, Mumbai
Mr. V SYAM PRASAD (THE ESIC INSPECTOR), WHO HAS COMMENTED IN THIS POST, HAS ALREADY ACKNOWLEDGED THIS DRAWBACK OF NOT ENOUGH DENOVO ON ESIC IN A SIMILAR POST WHERE I HAD POSTED MY SIMILAR VIEWS. IF YOU ASK WHY WE, COMMON MEN, DON'T ROUTE THROUGH PROPER CHANNELS TO POLITICAL LEADERS, CONCERNED OFFICERS, AND THE REST... BECAUSE IT'S OF NO USE. ALL THIS HOGWASH THAT PEOPLE SHOULD BRING TO NOTICE, PROTEST, ETC., IS OF NO USE IN OUR COUNTRY. YOU CAN BE THE BILLIONTH ONE TO TRY IT IF YOU DON'T BELIEVE ME. ROUTE YOUR CONCERN THROUGH PROPER CHANNELS AND LET ME KNOW WHAT RESULTS YOU GOT. ...AND MOREOVER, MY POST IS NOT AGAINST YOU OR YOUR KNOWLEDGE BASE ON ESIC... MY POST IS ABOUT WHAT EMPLOYEES THINK ABOUT IT. I AM DOING MY BIT BY POSTING IT AS A MATTER OF CONCERN TO THE CONCERNED ESIC AUTHORITY WITH HIS ACKNOWLEDGEMENT OF MY VIEWS IN MY EARLIER POST AND A PROMISE FROM HIM THAT HE WOULD LOOK INTO THE MATTER... AND LOOKING INTO MATTERS ALSO TAKES AGES IN OUR COUNTRY... AND THIS ISN'T AN OVERNIGHT OPINION... POST-INDEPENDENCE POLICIES ARE A PROOF OF IT, WHICH YOU CAN VERY WELL RESEARCH AS THIS WON'T BE AN IDEAL PLACE TO POST THEM. ONCE AGAIN, DON'T TAKE IT PERSONAL... THIS IS NOT FOR YOU... THIS IS ABOUT AGGRIEVED EMPLOYEES WHO ARE CONCERNED ABOUT SALARY CUTS AND DON'T WANT THIS OPTION OR WANT A BETTER OPTION... HOPE YOU UNDERSTAND... REGARDS
From India, Mumbai
Dear 28677c5420521383353edc6e6,
I don't know whether you understood or not... I appreciated you for your social consciousness and humanity. I don't know why you are reacting in such a way... I have responded to your post... Please don't react... just respond, if you can or just leave it... According to you, it is of no use even if we put efforts... So, you opine to leave it... Someone's thought would be like if our freedom fighters left the fight in the middle, thinking like that, where would be the independence... No issues, that's your opinion... You can put the same in a proper way, not reacting so emotionally and taking it personally. And I don't know in which phrase you feel that I took it personally. Anyhow, let us please end this unnecessary discussion and please don't expect my response in this regard henceforth.
Thanks & Regards
CRK
"28677c5420521383353edc6e6" wrote:
GREATEST CRK.MBA.(...FILL THE BLANKS..........) Mr. V SYAM PRASAD (THE ESIC INSPECTOR) WHO HAS COMMENTED IN THIS POST HAS ALREADY ACKNOWLEDGED THIS DRAWBACK OF NOT ENOUGH DONE ON ESIC IN A SIMILAR POST WHERE I HAD POSTED MY SIMILAR VIEWS. IF YOU ASK WHY WE COMMON MEN DON'T ROUTE THROUGH PROPER CHANNELS TO POLITICAL LEADERS, CONCERNED OFFICERS AND THE ROT... BECAUSE IT'S OF NO USE... ALL THIS HOGWASH THAT PEOPLE SHOULD BRING TO NOTICE, PROTEST ETC., IS OF NO USE IN OUR COUNTRY. YOU CAN BE THE BILLIONTH ONE TO TRY IT IF YOU DON'T BELIEVE ME. ROUTE YOUR CONCERN THROUGH PROPER CHANNEL AND LET ME KNOW WHAT RESULTS YOU GOT. ... AND MOREOVER, MY POST IS NOT AGAINST YOU OR YOUR KNOWLEDGE BASE ON ESIC... MY POST IS ABOUT WHAT EMPLOYEES THINK ABOUT IT. I AM DOING MY BIT BY POSTING IT AS A MATTER OF CONCERN TO THE CONCERNED ESIC AUTHORITY WITH HIS ACKNOWLEDGEMENT ON MY VIEWS IN MY EARLIER POST AND PROMISE FROM HIM THAT HE WOULD LOOK INTO THE MATTER... AND LOOKING INTO MATTER ALSO TAKES AGES IN OUR COUNTRY... AND THIS ISN'T AN OVERNIGHT OPINION... POST-INDEPENDENCE POLICIES ARE A PROOF OF IT WHICH YOU CAN VERY WELL RESEARCH AS THIS WON'T BE AN IDEAL PLACE TO POST THEM... ONCE AGAIN... DON'T TAKE IT PERSONAL... THIS IS NOT FOR YOU... THIS IS ABOUT AGGRIEVED EMPLOYEES WHO ARE CONCERNED ABOUT SALARY CUTS AND DON'T WANT THIS OPTION OR WANT A BETTER OPTION... HOPE YOU UNDERSTAND... REGARDS
From India, Vijayawada
I don't know whether you understood or not... I appreciated you for your social consciousness and humanity. I don't know why you are reacting in such a way... I have responded to your post... Please don't react... just respond, if you can or just leave it... According to you, it is of no use even if we put efforts... So, you opine to leave it... Someone's thought would be like if our freedom fighters left the fight in the middle, thinking like that, where would be the independence... No issues, that's your opinion... You can put the same in a proper way, not reacting so emotionally and taking it personally. And I don't know in which phrase you feel that I took it personally. Anyhow, let us please end this unnecessary discussion and please don't expect my response in this regard henceforth.
Thanks & Regards
CRK
"28677c5420521383353edc6e6" wrote:
GREATEST CRK.MBA.(...FILL THE BLANKS..........) Mr. V SYAM PRASAD (THE ESIC INSPECTOR) WHO HAS COMMENTED IN THIS POST HAS ALREADY ACKNOWLEDGED THIS DRAWBACK OF NOT ENOUGH DONE ON ESIC IN A SIMILAR POST WHERE I HAD POSTED MY SIMILAR VIEWS. IF YOU ASK WHY WE COMMON MEN DON'T ROUTE THROUGH PROPER CHANNELS TO POLITICAL LEADERS, CONCERNED OFFICERS AND THE ROT... BECAUSE IT'S OF NO USE... ALL THIS HOGWASH THAT PEOPLE SHOULD BRING TO NOTICE, PROTEST ETC., IS OF NO USE IN OUR COUNTRY. YOU CAN BE THE BILLIONTH ONE TO TRY IT IF YOU DON'T BELIEVE ME. ROUTE YOUR CONCERN THROUGH PROPER CHANNEL AND LET ME KNOW WHAT RESULTS YOU GOT. ... AND MOREOVER, MY POST IS NOT AGAINST YOU OR YOUR KNOWLEDGE BASE ON ESIC... MY POST IS ABOUT WHAT EMPLOYEES THINK ABOUT IT. I AM DOING MY BIT BY POSTING IT AS A MATTER OF CONCERN TO THE CONCERNED ESIC AUTHORITY WITH HIS ACKNOWLEDGEMENT ON MY VIEWS IN MY EARLIER POST AND PROMISE FROM HIM THAT HE WOULD LOOK INTO THE MATTER... AND LOOKING INTO MATTER ALSO TAKES AGES IN OUR COUNTRY... AND THIS ISN'T AN OVERNIGHT OPINION... POST-INDEPENDENCE POLICIES ARE A PROOF OF IT WHICH YOU CAN VERY WELL RESEARCH AS THIS WON'T BE AN IDEAL PLACE TO POST THEM... ONCE AGAIN... DON'T TAKE IT PERSONAL... THIS IS NOT FOR YOU... THIS IS ABOUT AGGRIEVED EMPLOYEES WHO ARE CONCERNED ABOUT SALARY CUTS AND DON'T WANT THIS OPTION OR WANT A BETTER OPTION... HOPE YOU UNDERSTAND... REGARDS
From India, Vijayawada
Don't misinterpret my acknowledgment. In every government department, the people like YOU and ME only run the show and give the image of the organization.
One simple question I ask you: instead of writing so much against ESIC, why don't you directly meet the concerned Regional Director and the Director (medical scheme) and present the facts before them with proof? India needs such kind of people, not the ones who fill pages against the demerits of the system. Hope you will become a good instrument in improving the facilities in ESIC, finally being useful to our brethren, the people who you feel have suffered with ESIC.
All the best.
From India, Hyderabad
One simple question I ask you: instead of writing so much against ESIC, why don't you directly meet the concerned Regional Director and the Director (medical scheme) and present the facts before them with proof? India needs such kind of people, not the ones who fill pages against the demerits of the system. Hope you will become a good instrument in improving the facilities in ESIC, finally being useful to our brethren, the people who you feel have suffered with ESIC.
All the best.
From India, Hyderabad
Please find attached the applicability, eligibility, benefits, provisions............ of ESIC. to be updated........ Might be useful....... CRK
From India, Vijayawada
From India, Vijayawada
@CRK.MBA
I was busy with bureaucracy work and knew you would be responding. I arrived early morning just to reply to you, and by the way, I don't like putting a Ph.D. tag on my name.
1) If you had read your reaction thoroughly, you would know why I responded and not reacted.
2) I have read many of your posts and have liked them. But in this case, I would like people to know the ground realities. If you want me to do ESIC responsibilities, then what are ESIC officials for? Anyways, the entire country knows what they are for, so forget it.
3) Comparing the Freedom Fighters analogy is completely unwarranted and meaningless. Comparisons are made to achieve similar results, not otherwise.
4) As you rightly said, and as I have already hinted, I leave it here... Regards,
@VSP
If you want me to do ESIC responsibilities, then what are ESIC officials for? And I might even go the distance to follow your advice, but in that case, you need to do the job that I am doing right now... Sorry, I don't agree with you, and once again, let's leave it here... Regards
From India, Mumbai
I was busy with bureaucracy work and knew you would be responding. I arrived early morning just to reply to you, and by the way, I don't like putting a Ph.D. tag on my name.
1) If you had read your reaction thoroughly, you would know why I responded and not reacted.
2) I have read many of your posts and have liked them. But in this case, I would like people to know the ground realities. If you want me to do ESIC responsibilities, then what are ESIC officials for? Anyways, the entire country knows what they are for, so forget it.
3) Comparing the Freedom Fighters analogy is completely unwarranted and meaningless. Comparisons are made to achieve similar results, not otherwise.
4) As you rightly said, and as I have already hinted, I leave it here... Regards,
@VSP
If you want me to do ESIC responsibilities, then what are ESIC officials for? And I might even go the distance to follow your advice, but in that case, you need to do the job that I am doing right now... Sorry, I don't agree with you, and once again, let's leave it here... Regards
From India, Mumbai
Hi Friends, Attached is a file with details of Benefits under ESIC. Hope this will be helpful to all. I had to prepare this to inform my employees.
From India, Mumbai
From India, Mumbai
Hi,
I wanted to know the procedure of maternity benefits for individuals who fall under ESI and the documents that need to be submitted. What is the eligibility criteria?
Looking forward to an early reply.
Thanks & Regards,
Jayachandra M
Email: Jayachandra@greettech.com
From India, Bangalore
I wanted to know the procedure of maternity benefits for individuals who fall under ESI and the documents that need to be submitted. What is the eligibility criteria?
Looking forward to an early reply.
Thanks & Regards,
Jayachandra M
Email: Jayachandra@greettech.com
From India, Bangalore
Please visit this post which has a recent speech from Narayan Murthy. CRK & VSP & Co. should enjoy this. https://www.citehr.com/285972-excell...anamurthy.html
Regards
From India, Mumbai
Regards
From India, Mumbai
Dear Jayachandra,
An insured woman has to provide notice of pregnancy before confinement using Form 17.
To claim maternity benefits, a certificate of expected confinement in Form 18 must be submitted to the appropriate office not earlier than 15 days before the date of confinement.
A claim for maternity benefit in Form 19 must state the date on which she ceased or will cease to work for remuneration and, within thirty days of the date on which her confinement takes place, a certificate of confinement in Form 18 must be provided in accordance with these regulations. (Within 30 days in case of miscarriage in Form 18 and Form 19.)
In the event of a claim for maternity benefit after the death of an insured woman leaving behind a child: Form 20; within 30 days of the death of the insured woman with a death certificate in Form 21.
For a claim for maternity benefit in case of sickness arising from pregnancy, Form No.9 along with a medical certificate in Form 7 or 8 should be submitted.
Maternity benefit is paid from the date it is claimed, provided that such date does not precede the expected date of confinement by more than 42 days and no work is done by the insured woman for remuneration.
From India, Mumbai
An insured woman has to provide notice of pregnancy before confinement using Form 17.
To claim maternity benefits, a certificate of expected confinement in Form 18 must be submitted to the appropriate office not earlier than 15 days before the date of confinement.
A claim for maternity benefit in Form 19 must state the date on which she ceased or will cease to work for remuneration and, within thirty days of the date on which her confinement takes place, a certificate of confinement in Form 18 must be provided in accordance with these regulations. (Within 30 days in case of miscarriage in Form 18 and Form 19.)
In the event of a claim for maternity benefit after the death of an insured woman leaving behind a child: Form 20; within 30 days of the death of the insured woman with a death certificate in Form 21.
For a claim for maternity benefit in case of sickness arising from pregnancy, Form No.9 along with a medical certificate in Form 7 or 8 should be submitted.
Maternity benefit is paid from the date it is claimed, provided that such date does not precede the expected date of confinement by more than 42 days and no work is done by the insured woman for remuneration.
From India, Mumbai
[SOURCE: ESI Corporation]
[DO'S]
Take permission in Form No. 105 before leaving your station of work.
Apply for examination by Medical Board immediately after your TDB terminates.
Appear before Medical Referee/Board when advised.
Avail of the benefits only when needed.
Fill in full particulars with the date on your claim form.
The Local Office Manager is your guide. Take his advice in case of any problem for drawing cash benefits.
[DON'TS]
Do not lend your Identity Card to anyone else.
Do not put unnecessary demands upon your doctor. Let him help others waiting for their turn.
Do not tamper with your medical certificate. This is a punishable act.
Do not delay in depositing your medical certificate with the local office.
Do not make false statements or false representations to obtain benefits which are not legally due to you.
[CRK]
From India, Vijayawada
Hey all give me full list of esic forms with description. And procedure for using them.. And awailing benefit from esic.
From India, Panipat
From India, Panipat
Dear All,
In this context of ESIC wages, I have a confusion. Can someone clarify the difference between TRAVELLING ALLOWANCE and CONVEYANCE/CONVEYANCE ALLOWANCE? Can these terms be used interchangeably? What will be the deduction status in case of these components?
In this context of ESIC wages, I have a confusion. Can someone clarify the difference between TRAVELLING ALLOWANCE and CONVEYANCE/CONVEYANCE ALLOWANCE? Can these terms be used interchangeably? What will be the deduction status in case of these components?
Dear Mitrasugata,
Please visit the below link for some clarifications - [Directorate of Income Tax, RSP & PR, New Delhi](http://www.incometaxindia.gov.in/publications/1_Compute_Your_Salary_Income/1_Income_from_salary.asp)
CRK
From India, Vijayawada
Please visit the below link for some clarifications - [Directorate of Income Tax, RSP & PR, New Delhi](http://www.incometaxindia.gov.in/publications/1_Compute_Your_Salary_Income/1_Income_from_salary.asp)
CRK
From India, Vijayawada
Respected Sir,
Thank you for the elaborated discussion. In this regard, I have a doubt. The contractor who works himself along with other employees deployed by him and receives remuneration for the work done by him is also covered under the Act as per the amended provisions in the year 1989. However, if the contractor is independently covered under the Act under sec 1(5), then he is not covered even if he earns remuneration below the ceiling limit.
With regards,
Sanagapalli VR
Gr I Manager (Retd)
ESI Corporation
From India, Hyderabad
Thank you for the elaborated discussion. In this regard, I have a doubt. The contractor who works himself along with other employees deployed by him and receives remuneration for the work done by him is also covered under the Act as per the amended provisions in the year 1989. However, if the contractor is independently covered under the Act under sec 1(5), then he is not covered even if he earns remuneration below the ceiling limit.
With regards,
Sanagapalli VR
Gr I Manager (Retd)
ESI Corporation
From India, Hyderabad
Dear CRK,
I have a query regarding ESIC benefits. If an employee contributes towards ESIC until 31st Oct 10 and after that, he/she leaves the services, how long can he/she avail ESIC benefits under the scheme?
Regards
From United States, Cincinnati
I have a query regarding ESIC benefits. If an employee contributes towards ESIC until 31st Oct 10 and after that, he/she leaves the services, how long can he/she avail ESIC benefits under the scheme?
Regards
From United States, Cincinnati
[COLOR="DarkGreen"][FONT="Georgia"]
How does the Employees' State Insurance Scheme assist you?
The dependence of an individual on cash income is a characteristic feature of the modern economy. An interruption of money income, even for a small period, is, therefore, a hardship; a prolonged loss of income is indeed a catastrophe. By coming forward to provide health protection and income maintenance in a series of oft-experienced contingencies like sickness, maternity, disablement, and death due to employment injury, the Employees' State Insurance Scheme tends to ameliorate your economic anxiety and to be a friend in need and distress.
Why is it called a Health Insurance Scheme?
The Employees' State Insurance Scheme performs a dual role; by providing assistance in kind (medical care), it tries to restore your health and working capacity, and by assistance in cash (cash benefit), it tries to sustain you when your income is interrupted. With better and facile health protection, greater vitality, and assurance of income-maintenance in times of need, it makes you every inch a better, healthier, secure worker and therefore, a happier man. The assistance comes to you not as an act of benevolence but in virtue of an acquired right.
Who administers the Employees' State Insurance Scheme?
The Employees' State Insurance Scheme is administered by a corporate body called the Employees' State Insurance Corporation (ESIC), which has members representing Employees, Employers, the Central Government, State Governments, Medical Profession, and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation. The other bodies at the national level are the Standing Committee (a representative body of the Corporation) and the Medical Benefit Council, a specialized body that advises the Corporation on the administration of Medical Benefit. At the Regional and Local levels, the Regional Boards and Local Committees have been constituted. There is, thus, an association of interests and interest groups at all levels. ESIC is the trustee of the interests of the insured persons. It discharges its obligations and duties through a network of Regional Offices and Branch Offices, Hospitals, and Dispensaries spread over the entire country.
Whom does the Scheme protect?
The Scheme protects all "employees" engaged on a monthly remuneration not exceeding Rs. 6500/- in a factory/ establishment to which the Act applies. Persons employed for wages on any work connected with the administration of the factory or establishment or any part, department, or branch thereof or purchase of raw materials, or distribution or sale of the product of a factory or establishment are also covered. Mines, Railway Running Sheds, Naval, Military, and Air Force Workshops, and specified seasonal factories are excluded. The scheme also provides full medical cover to the dependants of insured persons. In the event of the death of an insured person due to employment injury, dependants become eligible for a cash benefit.
Where do Employees' State Insurance Funds come from?
The Employees' State Insurance Funds are primarily built out of employer's contribution and employee's contribution payable monthly as a fixed percentage of wages.
How are the employees registered under the Scheme?
Simultaneously with his/her entry into employment in a covered factory or establishment, an employee is required to fill in a Declaration Form. The employee is then allotted a Registration Number, which distinguishes and identifies the person for the purposes of the Scheme. A person is registered once and once only upon his entry in insurable employment.
What is an Identity Card?
Simultaneously with his/her entry into employment in a covered factory or establishment, an employee is required to fill in a Declaration Form. The employee is then allotted a Registration Number, which distinguishes and identifies the person for the purposes of the Scheme. A person is registered once and once only upon his entry in insurable employment.
What are the rates of contribution?
Contributions payable in respect of an employee comprise employer's contribution and employee's contribution prescribed in Schedule I of the Act. An employee covered under the scheme has to contribute 1.75% of the wages, whereas, an employer contributes 4.75% of the wages payable to an employee. The total contribution in respect of an employee thus works out to 6.50% of the wages payable.
Who is exempted from payment of contribution?
Employees earning less than Rs 40/- a day are exempted from payment of contribution. The employer's share of contribution is, however, payable.
How are the Contributions collected?
The Contribution is deposited by the Employer in cash or by cheque at the designated branches of some nationalized banks. The responsibility for payment of all contributions is that of the employer with a right to deduct the Employees' share of contributions from employees' wages relating to the period in respect of which the Contribution is payable.
What are 'Contribution Periods' and 'Benefit Periods'?
Workers, covered under the ESI Act, are required to pay contribution towards the scheme on a monthly basis. A contribution period means a six-month time span from 1st April to 30th September and 1st October to 31st March. Thus, in a financial year, there are two contribution periods of six months duration.
Cash benefits under the scheme are generally linked with contributions paid. The benefit period starts three months after the closure of a contribution period. The two types of periods are elucidated below:-
Contribution Period
Benefit period
1st April to 30th September Corresponding
1st October to 31st March
1st January to 30th June of the following year
1st October to 31st March 18th July to 31st December
SOCIAL SECURITY BENEFITS
SICKNESS BENEFIT
What does 'Sickness Benefit' mean?
Sickness signifies a state of health necessitating medical treatment and attendance and abstention from work on medical grounds. Financial support extended by the Corporation in such a contingency is called Sickness Benefit.
What are the Contributory Conditions?
The contribution condition required to be fulfilled for the admissibility of sickness benefit during any benefit period is that contributions should have been paid in respect of an insured person in the corresponding contribution period for not less than 78 days.
How much is the Standard Benefit Rate?
The daily rate of Sickness Benefit during any benefit period is the 'standard benefit rate.' This rate corresponds to the average daily wage of an insured person during the corresponding contribution period and is roughly half of the daily wage rate. Benefit is paid for Sundays also. 28 wage groups have been evolved for working out the daily rate of Standard Sickness Benefit. Standard Benefit rates for 28 wage groups are shown in Annexure 'A'.
What is the duration of Sickness Benefit?
Sickness benefit is payable for a maximum period of 91 days in any two consecutive benefit periods. Benefit is not paid for an initial waiting period of 2 days unless the insured person is certified sick within 15 days of the last spell in which Sickness Benefit was paid.
What is Extended Sickness Benefit?
Extended Sickness Benefit is a Cash Benefit paid for prolonged illness due to any of the 34 specified diseases as mentioned below:
- Tuberculosis
- Leprosy
- Chronic Empyema
- Bronchiectasis
- Interstitial Lung disease
- AIDS
- Malignant Diseases
- Diabetes Mellitus-with proliferative retinopathy/diabetic foot nephropathy.
- Monoplegia
- Hemiplegia
- Paraplegia
- Hemiparesis
- Intracranial space-occupying lesion
- Spinal Cord Compression
- Parkinson's disease
- Myasthenia Gravis/Neuromuscular Dystrophies
- Immature Cataract with vision 6/60 or less
- Detachment of Retina
- Glaucoma
- Coronary Artery Diseases
- Congestive Heart Failure-Left, Right
- Cardiac valvular Diseases with failure/complications
- Cardiomyopathies
- Heart disease with surgical intervention along with complications
- Chronic Obstructive Lung diseases (COPD) with congestive heart failure (CorPulmonale),
- Cirrhosis of liver with ascitis/chronic active hepatitis, ("CAH")
- Dislocation of vertebra/prolapse of intervertebral disc
- Non-union or delayed union of fracture
- Post Traumatic surgical amputation of lower extremity
- Compound fracture with chronic osteomyelitis
- Schizophrenia
- Endogenous depression
- Manic Depressive Psychosis (MDP)
- Dementia
- More than 20% Burns with infection/complication
- Chronic Renal Failure
- Reynaud's disease/Burger's disease
In addition, extended sickness benefit may also be sanctioned by the prescribed authority, in the case of any rare disease or special circumstances on the recommendation of the specified authority.
What are the contributory conditions?
Except in case of disability from the administration of drugs/injections, the insured person should have been in continuous employment for a period of 2 years and should have contributed for at least 156 days in 4 preceding contribution periods.
How much is the benefit rate?
The daily rate of Extended Sickness Benefit is 40% more than the Standard Sickness Benefit rate admissible.
How Long is the benefit available?
After exhausting Sickness Benefit payable for 91 days, the ESB is payable up to a further period of 124/309 days that can be extended
From India, Vijayawada
How does the Employees' State Insurance Scheme assist you?
The dependence of an individual on cash income is a characteristic feature of the modern economy. An interruption of money income, even for a small period, is, therefore, a hardship; a prolonged loss of income is indeed a catastrophe. By coming forward to provide health protection and income maintenance in a series of oft-experienced contingencies like sickness, maternity, disablement, and death due to employment injury, the Employees' State Insurance Scheme tends to ameliorate your economic anxiety and to be a friend in need and distress.
Why is it called a Health Insurance Scheme?
The Employees' State Insurance Scheme performs a dual role; by providing assistance in kind (medical care), it tries to restore your health and working capacity, and by assistance in cash (cash benefit), it tries to sustain you when your income is interrupted. With better and facile health protection, greater vitality, and assurance of income-maintenance in times of need, it makes you every inch a better, healthier, secure worker and therefore, a happier man. The assistance comes to you not as an act of benevolence but in virtue of an acquired right.
Who administers the Employees' State Insurance Scheme?
The Employees' State Insurance Scheme is administered by a corporate body called the Employees' State Insurance Corporation (ESIC), which has members representing Employees, Employers, the Central Government, State Governments, Medical Profession, and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation. The other bodies at the national level are the Standing Committee (a representative body of the Corporation) and the Medical Benefit Council, a specialized body that advises the Corporation on the administration of Medical Benefit. At the Regional and Local levels, the Regional Boards and Local Committees have been constituted. There is, thus, an association of interests and interest groups at all levels. ESIC is the trustee of the interests of the insured persons. It discharges its obligations and duties through a network of Regional Offices and Branch Offices, Hospitals, and Dispensaries spread over the entire country.
Whom does the Scheme protect?
The Scheme protects all "employees" engaged on a monthly remuneration not exceeding Rs. 6500/- in a factory/ establishment to which the Act applies. Persons employed for wages on any work connected with the administration of the factory or establishment or any part, department, or branch thereof or purchase of raw materials, or distribution or sale of the product of a factory or establishment are also covered. Mines, Railway Running Sheds, Naval, Military, and Air Force Workshops, and specified seasonal factories are excluded. The scheme also provides full medical cover to the dependants of insured persons. In the event of the death of an insured person due to employment injury, dependants become eligible for a cash benefit.
Where do Employees' State Insurance Funds come from?
The Employees' State Insurance Funds are primarily built out of employer's contribution and employee's contribution payable monthly as a fixed percentage of wages.
How are the employees registered under the Scheme?
Simultaneously with his/her entry into employment in a covered factory or establishment, an employee is required to fill in a Declaration Form. The employee is then allotted a Registration Number, which distinguishes and identifies the person for the purposes of the Scheme. A person is registered once and once only upon his entry in insurable employment.
What is an Identity Card?
Simultaneously with his/her entry into employment in a covered factory or establishment, an employee is required to fill in a Declaration Form. The employee is then allotted a Registration Number, which distinguishes and identifies the person for the purposes of the Scheme. A person is registered once and once only upon his entry in insurable employment.
What are the rates of contribution?
Contributions payable in respect of an employee comprise employer's contribution and employee's contribution prescribed in Schedule I of the Act. An employee covered under the scheme has to contribute 1.75% of the wages, whereas, an employer contributes 4.75% of the wages payable to an employee. The total contribution in respect of an employee thus works out to 6.50% of the wages payable.
Who is exempted from payment of contribution?
Employees earning less than Rs 40/- a day are exempted from payment of contribution. The employer's share of contribution is, however, payable.
How are the Contributions collected?
The Contribution is deposited by the Employer in cash or by cheque at the designated branches of some nationalized banks. The responsibility for payment of all contributions is that of the employer with a right to deduct the Employees' share of contributions from employees' wages relating to the period in respect of which the Contribution is payable.
What are 'Contribution Periods' and 'Benefit Periods'?
Workers, covered under the ESI Act, are required to pay contribution towards the scheme on a monthly basis. A contribution period means a six-month time span from 1st April to 30th September and 1st October to 31st March. Thus, in a financial year, there are two contribution periods of six months duration.
Cash benefits under the scheme are generally linked with contributions paid. The benefit period starts three months after the closure of a contribution period. The two types of periods are elucidated below:-
Contribution Period
Benefit period
1st April to 30th September Corresponding
1st October to 31st March
1st January to 30th June of the following year
1st October to 31st March 18th July to 31st December
SOCIAL SECURITY BENEFITS
SICKNESS BENEFIT
What does 'Sickness Benefit' mean?
Sickness signifies a state of health necessitating medical treatment and attendance and abstention from work on medical grounds. Financial support extended by the Corporation in such a contingency is called Sickness Benefit.
What are the Contributory Conditions?
The contribution condition required to be fulfilled for the admissibility of sickness benefit during any benefit period is that contributions should have been paid in respect of an insured person in the corresponding contribution period for not less than 78 days.
How much is the Standard Benefit Rate?
The daily rate of Sickness Benefit during any benefit period is the 'standard benefit rate.' This rate corresponds to the average daily wage of an insured person during the corresponding contribution period and is roughly half of the daily wage rate. Benefit is paid for Sundays also. 28 wage groups have been evolved for working out the daily rate of Standard Sickness Benefit. Standard Benefit rates for 28 wage groups are shown in Annexure 'A'.
What is the duration of Sickness Benefit?
Sickness benefit is payable for a maximum period of 91 days in any two consecutive benefit periods. Benefit is not paid for an initial waiting period of 2 days unless the insured person is certified sick within 15 days of the last spell in which Sickness Benefit was paid.
What is Extended Sickness Benefit?
Extended Sickness Benefit is a Cash Benefit paid for prolonged illness due to any of the 34 specified diseases as mentioned below:
- Tuberculosis
- Leprosy
- Chronic Empyema
- Bronchiectasis
- Interstitial Lung disease
- AIDS
- Malignant Diseases
- Diabetes Mellitus-with proliferative retinopathy/diabetic foot nephropathy.
- Monoplegia
- Hemiplegia
- Paraplegia
- Hemiparesis
- Intracranial space-occupying lesion
- Spinal Cord Compression
- Parkinson's disease
- Myasthenia Gravis/Neuromuscular Dystrophies
- Immature Cataract with vision 6/60 or less
- Detachment of Retina
- Glaucoma
- Coronary Artery Diseases
- Congestive Heart Failure-Left, Right
- Cardiac valvular Diseases with failure/complications
- Cardiomyopathies
- Heart disease with surgical intervention along with complications
- Chronic Obstructive Lung diseases (COPD) with congestive heart failure (CorPulmonale),
- Cirrhosis of liver with ascitis/chronic active hepatitis, ("CAH")
- Dislocation of vertebra/prolapse of intervertebral disc
- Non-union or delayed union of fracture
- Post Traumatic surgical amputation of lower extremity
- Compound fracture with chronic osteomyelitis
- Schizophrenia
- Endogenous depression
- Manic Depressive Psychosis (MDP)
- Dementia
- More than 20% Burns with infection/complication
- Chronic Renal Failure
- Reynaud's disease/Burger's disease
In addition, extended sickness benefit may also be sanctioned by the prescribed authority, in the case of any rare disease or special circumstances on the recommendation of the specified authority.
What are the contributory conditions?
Except in case of disability from the administration of drugs/injections, the insured person should have been in continuous employment for a period of 2 years and should have contributed for at least 156 days in 4 preceding contribution periods.
How much is the benefit rate?
The daily rate of Extended Sickness Benefit is 40% more than the Standard Sickness Benefit rate admissible.
How Long is the benefit available?
After exhausting Sickness Benefit payable for 91 days, the ESB is payable up to a further period of 124/309 days that can be extended
From India, Vijayawada
The employee and his family are entitled to Medical Benefit until the end of June 2011. Subject to the fulfillment of contributions, he is also entitled to cash benefits (except employment injury benefit) during this period.
From India, Hyderabad
From India, Hyderabad
Thank you, Mr. CRKM, for the detailed information on benefits admissible under the ESI Scheme as available in the ESI "Employee Guide" (2003 edition). I am giving below the details of the medical benefit admissible to retired employees and permanently disabled persons, and also the "Unemployment Allowance" admissible to the insured person in case of retrenchment/closure of the factory. I am also providing an update wherever required, to the information furnished by you.
What is the medical benefit admissible to an insured person after leaving his insurable employment?
An insured person who leaves insurable employment on attaining the age of superannuation or retires under a Voluntary Retirement Scheme or takes premature retirement, after being an insured person for not less than 5 years, shall be eligible to receive medical benefits for himself and his spouse subject to the production of proof thereof and payment of a nominal contribution of rupees one hundred and twenty for one year. In case the insured person expires, his spouse is entitled to the medical benefit for the remaining period for which the contribution was made, and she can continue to receive the medical benefit on payment of the contribution @ 120/p.a. for a further period.
This medical benefit is also admissible to an insured person who ceases to be in employment on account of permanent disablement caused due to employment injury for himself and his spouse on payment of a similar contribution till the date on which he would have vacated the employment on attaining the age of superannuation, had he not sustained such permanent disablement.
What is the unemployment allowance?
The ESI Scheme has introduced a scheme of unemployment allowance to the IPs who have been rendered unemployed involuntarily due to the closure of the factory/establishment, retrenchment, or permanent invalidity arising out of non-employment injury w.e.f. 1-4-2005. Affected IPs and their families will also be entitled to medical care from ESI Dispensaries/hospitals during periods of unemployment allowance.
Unemployment which arises due to the following reasons shall be covered under the Scheme:
1. Retrenchment as defined in the Industrial Disputes Act, 1947.
2. Closure of the factory/establishment as defined in the Industrial Disputes Act, 1947.
3. Permanent invalidity not less than 50% arising out of non-employment injury. (The invalidity should be duly certified by a Medical Board constituted by the Central or State Government).
The applicant should have been an Insured Person under the ESI Act on the date of the loss of insurable employment on account of retrenchment, closure of the factory/establishment, or permanent invalidity arising out of non-employment injury.
Contribution in respect of him/her should have been paid/payable for a minimum period of three years (with effect from 11.09.2009 - previously five years) prior to the loss of employment. The duration of a year in this context would mean a period of 156 days or more. An IP who has lost employment and in respect of whom the contribution was paid/payable for 156 days or more in any two consecutive contribution periods in this reckoning will be deemed as having worked for one full year. Similarly, those who have paid the contribution for 78 days more in a contribution period will be deemed as having served for a half year.
The period of service of an I.P. need not be continuous with one employer. The I.P. shall be entitled to this allowance irrespective of the fact whether part of his/her service as an employer in the same or in any other region.
The I.P. need not satisfy any qualifying conditions afresh for claiming unemployment allowance for any subsequent spells provided to him/her, but he/she should be an IP on the subsequent dates of unemployment. The unemployment allowance in the subsequent spells shall be at the same rate as has already been decided/paid.
As specified in Section 65 of the Act, an IP shall not be entitled to any other cash benefit and the unemployment Allowance simultaneously for the same period. However, he/she may opt for either of the two, i.e., cash benefit or unemployment allowance. The term 'cash benefit' excludes periodical payments of PDB under ESI Act and Regulations.
As specified under Section 61 of the ESI Act, an IP who is in receipt of unemployment allowance shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment.
There will be a one-month waiting period after the retrenchment.
Unemployment allowance shall not be admissible in the following circumstances:
1. During lockout.
2. Layoff/temporary closure of factory/estt.
3. Strike resorted to by the employees.
4. Voluntary abandonment of employment/premature retirement.
The rate of unemployment allowance in respect of a person who becomes unemployed shall be calculated on the basis of the average daily wage during the last four completed contribution periods, immediately preceding the date of unemployment.
The daily rate of unemployment allowance shall be the Standard Benefit Rate as specified in the Table of Standard Benefit under Rule 54 of ESI (Central) Rules 1950 corresponding to the average daily wage so arrived.
Duration of allowance:
The maximum duration, for which an IP shall be eligible to draw the unemployment allowance during his/her entire lifetime, would be six months. However, the unemployment allowance shall not be admissible for a period less than one month at a time.
In case the beneficiary gets gainful employment subsequently, he/she can avail the balance allowance in case the contingency so arises, but he/she should again be IP to be eligible for unemployment allowance for subsequent spells.
The IP eligible for unemployment allowance under the Scheme shall also be entitled to medical care for himself/herself and his/her family from the ESI Dispensaries/ESI hospitals/ IMPS Clinics for a period corresponding to the contribution Period before unemployment, whichever is later.
In the event of the death of the IP on any date prior to the expiry of the 6 months period of unemployment allowance, the family of the deceased IP shall continue to be entitled to medical care for the remaining period as the case would have been if the IP remained alive.
Medical care under this scheme shall, however, be restricted to only for the first spell of unemployment.
The claim for unemployment Allowance shall be submitted by the claimant at any time but not later than six months from the date of retrenchment/unemployment to the appropriate Branch Office in the Form (UA-1) supported by the documentary evidence (in Form UA-2) proving his/her retrenchment/unemployment/invalidity.
This certificate is to be issued by the Inspector of Factories, Asst/Deputy Commissioner, Labor, Workmen Compensation Commissioner, or any other authority specified in this regard. The Certificate of invalidity will be issued by the medical board constituted by the Central/State Govt.
Mode of Payment of allowance:
The allowance is payable by Account Payee Cheque only.
Payment in the event of the death of IP:
The amount of unemployment allowance up to and including the date of the death of IP is payable to his/her nominee/legal heir.
Updates for the other information:
1. The Scheme protects all "employees" engaged on a monthly remuneration not exceeding Rs. 15,000/- (w.e.from 1-5-2010) - in a factory/establishment to which the Act applies.
2. The rates of contribution are prescribed under Rule 51 of ESI (Central) Rules, 1950. The first Schedule to the Act has been repealed from 1-2-91 vide ESI (Amendment) Act, 1989, and the Central Rules from 50 to 62 have been brought into force from 1-2-91.
3. Employees earning average wages not exceeding Rs. 70/- a day are exempted from the payment of contribution. The employer's share of contribution is, however, payable.
4. The benefit period for the contribution period from 1st October to 31st March is 1st July to 31st December.
5. The daily rate of Sickness Benefit during any benefit period is twenty percent more than the "standard benefit rate" during the corresponding contribution period.
6. There are 99 wage groups in the Standard benefit rate table in Rule 54.
7. The daily rate of disablement benefit is 50% more than the Standard Sickness Benefit rate and is roughly equivalent to about '75% of the wage rate.
8. Dependents entitled to the dependant benefit are (from 1st June 2010):
(a) Widow/Widows during life or until remarriage.
(b) Widowed mother for life.
(c) Legitimate or adopted son until he attains the age of 25 years.
(d) Legitimate or adopted unmarried daughter until her marriage.
(e) If wholly dependent on the earnings of the insured person at the time of his death, a legitimate or adopted son or daughter who has attained the age of twenty-five years and is infirm.
In the absence of any widow or legitimate child, the benefit is payable to a parent or grandparent for life, to any other male dependant until age 18, or to an unmarried or widowed female dependant until age 18.
9. Maternity benefit is periodical payments to an insured woman for a specified period of abstention from work, due to confinement, miscarriage, or sickness arising out of pregnancy, premature birth of a child, or miscarriage or confinement.
10. An insured woman shall be qualified to claim maternity benefits for a confinement occurring or expected to occur in a benefit period if the contributions in respect of her were payable for not less than seventy days in the immediately preceding two consecutive contribution periods. The daily rate of Maternity benefit is double the 'Standard benefit rate' during the corresponding benefit period.
11. Medical bonus (now termed as "confinement expenses") to an insured
From India, Hyderabad
What is the medical benefit admissible to an insured person after leaving his insurable employment?
An insured person who leaves insurable employment on attaining the age of superannuation or retires under a Voluntary Retirement Scheme or takes premature retirement, after being an insured person for not less than 5 years, shall be eligible to receive medical benefits for himself and his spouse subject to the production of proof thereof and payment of a nominal contribution of rupees one hundred and twenty for one year. In case the insured person expires, his spouse is entitled to the medical benefit for the remaining period for which the contribution was made, and she can continue to receive the medical benefit on payment of the contribution @ 120/p.a. for a further period.
This medical benefit is also admissible to an insured person who ceases to be in employment on account of permanent disablement caused due to employment injury for himself and his spouse on payment of a similar contribution till the date on which he would have vacated the employment on attaining the age of superannuation, had he not sustained such permanent disablement.
What is the unemployment allowance?
The ESI Scheme has introduced a scheme of unemployment allowance to the IPs who have been rendered unemployed involuntarily due to the closure of the factory/establishment, retrenchment, or permanent invalidity arising out of non-employment injury w.e.f. 1-4-2005. Affected IPs and their families will also be entitled to medical care from ESI Dispensaries/hospitals during periods of unemployment allowance.
Unemployment which arises due to the following reasons shall be covered under the Scheme:
1. Retrenchment as defined in the Industrial Disputes Act, 1947.
2. Closure of the factory/establishment as defined in the Industrial Disputes Act, 1947.
3. Permanent invalidity not less than 50% arising out of non-employment injury. (The invalidity should be duly certified by a Medical Board constituted by the Central or State Government).
The applicant should have been an Insured Person under the ESI Act on the date of the loss of insurable employment on account of retrenchment, closure of the factory/establishment, or permanent invalidity arising out of non-employment injury.
Contribution in respect of him/her should have been paid/payable for a minimum period of three years (with effect from 11.09.2009 - previously five years) prior to the loss of employment. The duration of a year in this context would mean a period of 156 days or more. An IP who has lost employment and in respect of whom the contribution was paid/payable for 156 days or more in any two consecutive contribution periods in this reckoning will be deemed as having worked for one full year. Similarly, those who have paid the contribution for 78 days more in a contribution period will be deemed as having served for a half year.
The period of service of an I.P. need not be continuous with one employer. The I.P. shall be entitled to this allowance irrespective of the fact whether part of his/her service as an employer in the same or in any other region.
The I.P. need not satisfy any qualifying conditions afresh for claiming unemployment allowance for any subsequent spells provided to him/her, but he/she should be an IP on the subsequent dates of unemployment. The unemployment allowance in the subsequent spells shall be at the same rate as has already been decided/paid.
As specified in Section 65 of the Act, an IP shall not be entitled to any other cash benefit and the unemployment Allowance simultaneously for the same period. However, he/she may opt for either of the two, i.e., cash benefit or unemployment allowance. The term 'cash benefit' excludes periodical payments of PDB under ESI Act and Regulations.
As specified under Section 61 of the ESI Act, an IP who is in receipt of unemployment allowance shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment.
There will be a one-month waiting period after the retrenchment.
Unemployment allowance shall not be admissible in the following circumstances:
1. During lockout.
2. Layoff/temporary closure of factory/estt.
3. Strike resorted to by the employees.
4. Voluntary abandonment of employment/premature retirement.
The rate of unemployment allowance in respect of a person who becomes unemployed shall be calculated on the basis of the average daily wage during the last four completed contribution periods, immediately preceding the date of unemployment.
The daily rate of unemployment allowance shall be the Standard Benefit Rate as specified in the Table of Standard Benefit under Rule 54 of ESI (Central) Rules 1950 corresponding to the average daily wage so arrived.
Duration of allowance:
The maximum duration, for which an IP shall be eligible to draw the unemployment allowance during his/her entire lifetime, would be six months. However, the unemployment allowance shall not be admissible for a period less than one month at a time.
In case the beneficiary gets gainful employment subsequently, he/she can avail the balance allowance in case the contingency so arises, but he/she should again be IP to be eligible for unemployment allowance for subsequent spells.
The IP eligible for unemployment allowance under the Scheme shall also be entitled to medical care for himself/herself and his/her family from the ESI Dispensaries/ESI hospitals/ IMPS Clinics for a period corresponding to the contribution Period before unemployment, whichever is later.
In the event of the death of the IP on any date prior to the expiry of the 6 months period of unemployment allowance, the family of the deceased IP shall continue to be entitled to medical care for the remaining period as the case would have been if the IP remained alive.
Medical care under this scheme shall, however, be restricted to only for the first spell of unemployment.
The claim for unemployment Allowance shall be submitted by the claimant at any time but not later than six months from the date of retrenchment/unemployment to the appropriate Branch Office in the Form (UA-1) supported by the documentary evidence (in Form UA-2) proving his/her retrenchment/unemployment/invalidity.
This certificate is to be issued by the Inspector of Factories, Asst/Deputy Commissioner, Labor, Workmen Compensation Commissioner, or any other authority specified in this regard. The Certificate of invalidity will be issued by the medical board constituted by the Central/State Govt.
Mode of Payment of allowance:
The allowance is payable by Account Payee Cheque only.
Payment in the event of the death of IP:
The amount of unemployment allowance up to and including the date of the death of IP is payable to his/her nominee/legal heir.
Updates for the other information:
1. The Scheme protects all "employees" engaged on a monthly remuneration not exceeding Rs. 15,000/- (w.e.from 1-5-2010) - in a factory/establishment to which the Act applies.
2. The rates of contribution are prescribed under Rule 51 of ESI (Central) Rules, 1950. The first Schedule to the Act has been repealed from 1-2-91 vide ESI (Amendment) Act, 1989, and the Central Rules from 50 to 62 have been brought into force from 1-2-91.
3. Employees earning average wages not exceeding Rs. 70/- a day are exempted from the payment of contribution. The employer's share of contribution is, however, payable.
4. The benefit period for the contribution period from 1st October to 31st March is 1st July to 31st December.
5. The daily rate of Sickness Benefit during any benefit period is twenty percent more than the "standard benefit rate" during the corresponding contribution period.
6. There are 99 wage groups in the Standard benefit rate table in Rule 54.
7. The daily rate of disablement benefit is 50% more than the Standard Sickness Benefit rate and is roughly equivalent to about '75% of the wage rate.
8. Dependents entitled to the dependant benefit are (from 1st June 2010):
(a) Widow/Widows during life or until remarriage.
(b) Widowed mother for life.
(c) Legitimate or adopted son until he attains the age of 25 years.
(d) Legitimate or adopted unmarried daughter until her marriage.
(e) If wholly dependent on the earnings of the insured person at the time of his death, a legitimate or adopted son or daughter who has attained the age of twenty-five years and is infirm.
In the absence of any widow or legitimate child, the benefit is payable to a parent or grandparent for life, to any other male dependant until age 18, or to an unmarried or widowed female dependant until age 18.
9. Maternity benefit is periodical payments to an insured woman for a specified period of abstention from work, due to confinement, miscarriage, or sickness arising out of pregnancy, premature birth of a child, or miscarriage or confinement.
10. An insured woman shall be qualified to claim maternity benefits for a confinement occurring or expected to occur in a benefit period if the contributions in respect of her were payable for not less than seventy days in the immediately preceding two consecutive contribution periods. The daily rate of Maternity benefit is double the 'Standard benefit rate' during the corresponding benefit period.
11. Medical bonus (now termed as "confinement expenses") to an insured
From India, Hyderabad
Dear KVRM,
With due respect, I would like to add that due to a typographical mistake, there might have been an error in the Unemployment allowance particulars:
Now, the I.P. who is entitled to the "Unemployment allowance" is entitled to a maximum period of "12 months, i.e., 360 days" instead of "6 months". The eligibility criteria have also been changed from continuous insurable employment for 5 years to 3 years.
With regards,
From India, Hyderabad
With due respect, I would like to add that due to a typographical mistake, there might have been an error in the Unemployment allowance particulars:
Now, the I.P. who is entitled to the "Unemployment allowance" is entitled to a maximum period of "12 months, i.e., 360 days" instead of "6 months". The eligibility criteria have also been changed from continuous insurable employment for 5 years to 3 years.
With regards,
From India, Hyderabad
Dear VSP,
Thank you for your timely correction. Now, the unemployment allowance is payable for a maximum period of twelve months either in one spell or in different spells of not less than one month's duration. I have already mentioned that the eligibility criteria have been reduced from 5 years to 3 years of continuous insurable employment with effect from 11-9-2009. One more change is the time limit for the submission of a claim for unemployment allowance has been extended up to nine months with effect from 1st July 2010.
From India, Hyderabad
Thank you for your timely correction. Now, the unemployment allowance is payable for a maximum period of twelve months either in one spell or in different spells of not less than one month's duration. I have already mentioned that the eligibility criteria have been reduced from 5 years to 3 years of continuous insurable employment with effect from 11-9-2009. One more change is the time limit for the submission of a claim for unemployment allowance has been extended up to nine months with effect from 1st July 2010.
From India, Hyderabad
Dear All,
I have referred to many sites to understand in detail about ESI, but I haven't found one piece of information. Can anyone clarify whether a person covered under ESI has to receive treatment only from ESI facilities or if they can seek general treatments like for fever or back pain in private hospitals?
Regards,
Prasad
From India, Bangalore
I have referred to many sites to understand in detail about ESI, but I haven't found one piece of information. Can anyone clarify whether a person covered under ESI has to receive treatment only from ESI facilities or if they can seek general treatments like for fever or back pain in private hospitals?
Regards,
Prasad
From India, Bangalore
ESIC is a waste of money for both employees and employers. Have you ever wondered why companies opt for an additional Mediclaim Policy despite having ESIC?
Instead of boasting about ESIC, there should have been good facilities available before making it a statutory deduction. Why don't some of our Political Superstars and Bureaucrats avail of this facility in those pathetic hospitals if it is really that good?
Making a scheme look good on paper is child's play. Implementing real change is what real men do and what real men want.
Regards
From India, Mumbai
Instead of boasting about ESIC, there should have been good facilities available before making it a statutory deduction. Why don't some of our Political Superstars and Bureaucrats avail of this facility in those pathetic hospitals if it is really that good?
Making a scheme look good on paper is child's play. Implementing real change is what real men do and what real men want.
Regards
From India, Mumbai
One of our employees was pregnant. She didn't inform ESI about the pregnancy, and now she has given birth to a child in a private hospital. I have two queries:
1. Is there any process to claim hospital expenses for the delivery?
2. Is the company liable to pay her 3 months' salary (paid leave benefit) if she did not receive any paid leave benefit from ESI?
Please help.
Thanks,
Rajiv Verma
From India, Delhi
1. Is there any process to claim hospital expenses for the delivery?
2. Is the company liable to pay her 3 months' salary (paid leave benefit) if she did not receive any paid leave benefit from ESI?
Please help.
Thanks,
Rajiv Verma
From India, Delhi
Computerization in ESI
Now, in a phased manner, computerization in ESI is being introduced, and in some states, the preparation of monthly challan online has become mandatory. While entering the details of wages for the generation of the monthly challan, if any mistake is made in entering the wages, it cannot be amended. The system does not allow for amending the amount of wages that was wrongly entered due to oversight or the mistake of the data entry operator. If a provision is made for amending the wages, similar to the case of employee registration which provides a provision for updating IP details. Please shed light on this aspect.
Sanagapalli VR
From India, Hyderabad
Now, in a phased manner, computerization in ESI is being introduced, and in some states, the preparation of monthly challan online has become mandatory. While entering the details of wages for the generation of the monthly challan, if any mistake is made in entering the wages, it cannot be amended. The system does not allow for amending the amount of wages that was wrongly entered due to oversight or the mistake of the data entry operator. If a provision is made for amending the wages, similar to the case of employee registration which provides a provision for updating IP details. Please shed light on this aspect.
Sanagapalli VR
From India, Hyderabad
Dear Mr. VKRM,
Can you please let me know whether the insured person contributed from April to September 2012? He left employment on January 15, 2013. Is he eligible for medical benefits even though he has exited from that employment?
I would appreciate your clarification.
Thank you.
From India, Madras
Can you please let me know whether the insured person contributed from April to September 2012? He left employment on January 15, 2013. Is he eligible for medical benefits even though he has exited from that employment?
I would appreciate your clarification.
Thank you.
From India, Madras
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