ESI act

ESI act


ESI act was made in 1948.

  • Under the ESI act, sickness benefit is given to a person for a maximum period of 91 days out of 365 days.
  • Under the ESI act, an insured woman is entitled to maternity benefit for 12 weeks in case of confinement, 6 weeks for miscarriage, 30 days for sickness arising out of confinement.The benefit is allowed at about full wages.

Scope of ES1 includes :

  • 10 or more worker whether power is used or not
  • Shops
  • Hotels
  • Cinemas and Theatres
  • Newspaper establishments
  • Road-motor transport establishments
  • Private medical and educational institutions employing 20 or more persons (in some states).

Finance of ESI scheme

The scheme is run by contribution by employees and employers and grants from central and state governments?

  1. Employers contribution → 4.75% of total wages bills
  2. Employee contribution → 1.75% of total wages bills
  3. The state government’s share of expenditure on medical care is ‘/8 of total cost of medical care.
Exam Question
 
  • Sickness benefit under the ESI act consists of periodical cash payment to an insured person in case of sickness. The benefit is payable for a maximum period of 91 days in any continuous period of 365 days, the daily rate being about 505 of daily wages.
  • Under the ESI act, an insured woman is entitled to maternity benefit for 12 weeks in case of confinement, 6 weeks for miscarriage, 30 days for sickness arising out of confinement.
  • The Employees State Insurance (ESI) Act act passed in 1948
  • Educational institutions are also included under ESI scope.But it is included only in some states and there should be 20 or more employed persons
  • ESI act does not cover railway
  • The scheme is run by contribution by employees and employers and grants from central and state governments?
  1. Employers contribution → 4.75% of total wages bills
  2. Employee contribution → 1.75% of total wages bills
  3. The state government’s share of expenditure on medical care is ‘/8 of total cost of medical care.
Don’t Forget to Solve all the previous Year Question asked on ESI act

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