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[ACT NO. 34 OF YEAR 1948, DATED 19TH
APRIL, 1948
GROUP MEMBERS
1. POOJA RAMESH (74)

2. ABHISHEK ROY (76)

3. MANJIRI SAMUEL (79)

4. IRMAN SANDHU (80)

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Ä An Act to provide for certain benefits to employees

in case of sickness, maternity and employment injury
and to make provision for certain other matters in
relation thereto.

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Ä |he objective of the act is to secure sickness,
maternity, disablement and medical benefits to the
employees of factories and establishment and
dependants· benefits to the dependents of such
employees.


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Ä |o whole of INDIA, to all factories including the
factories belonging to the government and other
than seasonal factories.

Ä |o all factories and establishment employing 20 or

more employees.

Ä Every employee drawing wages upto Rs.10,000/-

per month.
 
 


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Ä |he employer of a factory or an establishment
desirous of registering it under the AC| has to send to
the regional office within 15 days from resolution
passed in the meeting conducted in this concern.
Ä Upon receipt of the Declaration of Registration the
Regional office shall if satisfied that the factory or the
establishment is covered by the AC|, a lot it to a code
number and there upon a factory or the establishment
shall stand registered under the AC|.
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Ä |he contribution payable under this Act in respect of

an employee shall comprise contribution payable by
the employer and contribution payable by the
employee and shall be paid to the Corporation.

Ä Employees : 1.75% on total monthly wages.

Ä Employer : 4.75% on total monthly wages.

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Ä |here are two contribution periods each of six

months duration and two corresponding benefit
periods also of six months duration as under.

Contribution period
1st April to 30th Sept.
1st Oct. to 31st March

Corresponding Cash Benefit period

1st January of the following year to 30th June.
1st July to 31st December of the current year.
 $%&''%()*%+),-.(*%/
0%(*$'1*'%(
Ä No employee's contribution shall be payable by or on
behalf of an employee whose average daily wages
during a wage period are below such wages as may
be prescribed by the Central Government.

Ä Contribution (both the employer's contribution and the

employee's contribution) shall be payable by the
principal employer for each wage period in respect
of the whole or part of which wages are payable to
the employee and not otherwise.
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Ä Both the employer·s and the employees· contribution are
to be paid in cash or by cheque, into any bank authorized
by the E.S.I Corporation, by filling in a prescribed challan
in quadruplicate within 21 days following the end of the
calendar month in which the contribution falls due.

Ä |he bank will retain two copies of the challan and return
the other two to the employer, one for submitting to the
Regional office of the Corporation and the other for the
record of the employer!
 

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Ä Subject to the provisions of this Act, the Corporation
may make regulations for any matter relating or
incidental to the payment and collection of
contributions payable under this Act and without
prejudice to the generality of the foregoing power
such regulations may provide for 
Ä |he manner and time of payment of contributions,
Ä |he date by which evidence of contributions having
been paid is to be received by the Corporation

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Ä Employees whose average daily wages during a

wage period are less than Rs. 50 are exempted
from making any contribution
[u/s 42(1)].


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|he Act provides for 6 types of benefits to which the

insured person, their dependents or certain other
persons are entitled. |hese benefits are as follows:
Ä Sickness benefit

Ä Maternity benefit

Ä Disablement benefit

Ä Dependents· benefit

Ä Medical benefit and

Ä Funeral benefit
 '04(..(./'*
Ä Insured employees is entitled to receive for the period
of sickness as the daily ´standard benefit rateµ.
Ä Minimum 78 days of the corresponding contribution is
must.
Ä Benefit is not available for the first 2 days of sickness.
Ä Maximum period for benefit is 91 days in one year
Ä a

 beefi 
e : |he daily rate which sickness
benefit is payable to an insured employee during the
period of his sickness
Lowest rate is Rs. 14/-
Highest rate is Rs. 195/-

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Ä Confinement, miscarriage or medical termination of
pregnancy.
Ä Sickness arising out of pregnancy, confinement,
premature birth of child or miscarriage, medical
termination of pregnancy.
Ä Minimum 80 days in the immediately preceding two
consecutive contribution period is must.
Ä Maximum period for benefit is 91 days in one year.



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Ä Benefit shall be payable to an insured person
suffering from disablement as a result of
employment injury .
Ä Permanent disablement, whether total or partial, as
a result of an employment injury
( personal injury caused by an accident arising out
of and in the course of employment).
Ä Benefit for the whole life.
Ä |he daily rate is 75% of the wages.



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Ä ±hen and insured employee dies as a result of

employment injury, his widow and children and in
the case the employee does not leave behind him a
widow or children, his other dependents, are
entitled to receive periodical payments.
Ä In case the insured person dies without leaving
behind him the dependents, the dependents benefit
shall be paid to the other dependents of the
deceased.
 DEPENDEN|S
Dependents mean relative of deceased insured person:-
a) ±idow
b) Minor·s son
c) Unmarried daughter
d) ±idow mother
e) Dependent·s son or daughter
f) parents
g) Minor·s brother or unmarried sister
h) ±idow daughter in law
i) Paternal grand parents




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Is given to
Ä Insured employee or (where medical benefit is
extended to his family) a member of his family
whose condition requires medical treatement

Ä Available to the employee during any period for

which contributions are paid in respect of him or in
which he can claim sickness benefit.
 


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Ä In case of death of an insured employee, the eldest
surviving member of his family, and if the employee
had no family or was not living with his family at
the time of his death, then the person who actually
incurs expenditure on the funeral of the employee,
is entitled to receive a payment called ´funeral
expensesµ.
Ä Maximum permissible amount of such payment is Rs.
3000/-


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Ä An employee is not entitled to receive two benefits
at the same time. |hat means he cannot receive for
the same period.
a) Both sickness benefit or maternity benefit
b) Both sickness benefit and disablement benefit for
temporary disablement.
c) Both maternity benefit and disablement benefit
for temporary disablement.

Ä j
-1 :
Declaration form.
Ä j
-3:
Return of declaration form.
Ä j
-6:
Return of contribution form [half
yearly returns]
Ä j
- 16:
Application for accident report.
È j
-37:
Certification of employment.

È j
- 53:
Application for change of dispensary
branch office.

È j
-72:
Application for duplicate E.S.I. card.

È j
-1B:
Change in family declaration report.



If any person ²
a) Fails to pay any contribution payable by him
under the AC|,
b) Deducts from the wages of an employee the
employer·s contribution,
c) Fails to submit any return required by the
regulation, or makes a false return. He would be
punished with imprisonment upto 1 year or with
fine upto Rs. 4000/- or with both.

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Ä |he daily rates of sickness benefit as given under
rules 55 has been increased by 20%.
Ä Daily rates of disability benefits have been
increased to 50% from 40 %.
Ä Daily rates of dependent·s benefit have been
increased to 50% from 40%.
Ä Funeral expenses given under rule 59 has been
increased to Rs. 3000/- from Rs. 2500/-.
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