An ESI Act was passed in 1948 to prevent workers from experiencing financial hardship when they are sick, pregnant, disabled, occupationally ill or die due to an employment injury – resulting in a loss of wages or earnings capacity. Factory employees of more than 10 people must register with ESI. In this article, we discuss the benefits of esi pf registration fees for establishments that employ more than 20 people including shops, hotels, restaurants, cinemas, and road-motor transport undertakings.
Benefits related to health
As soon as an insured person enters insurable employment, they are entitled to full medical care, and their family members are entitled to the same benefits. The cost of treatment for an insured person or his family member cannot be capped. As part of the annual premium of Rs.120/-, retired and permanently disabled insured persons and their spouses also receive medical care.
Benefits for sickness
Insured workers are entitled to 91 days of sickness benefit in a year in the form of a cash compensation at the rate of 70% of their wages. For an insured worker to qualify for sickness benefits, 78 days must be contributed in a period of 6 months. The extended sickness benefit rate of 80% of wages can be claimed for workers with malignant or long-term diseases for up to two years. The enhanced sickness benefit equal to full wage is also payable to insured workers undergoing sterilization for 7 days or 14 days, depending on gender.
Women’s Maternity Benefits
A maternity benefit is provided for three months for confinement or pregnancy, which may be extended by one month on medical advice at the rate of full pay if the prior year’s contribution was 70 days or more.
Benefits for the disabled
No matter whether you have paid any contributions or not, 90% of your wage will be covered as long as you are temporarily disabled from the day you entered insurable employment. The Permanent Disability Benefit is payable at a rate of 90% of the wage per month, based on the extent of loss of earning capacity certified by a Medical Board, in the event of permanent disability.
Beneficiary for dependents
In the event of death due to an occupational injury or occupational hazard, a dependant benefit is paid at 90% of wage in the form of a monthly payment to the dependants of the deceased insured person.
The cost of funerals
On the first day of entering insurable employment, Rs.10,000/- is payable to the dependents or person performing last rites.
Benefits for Unemployed
Insured persons who become unemployed after being insured three or more years, as a result of factory closure, retrenchment or permanent disability, receive unemployment allowance under the Rajiv Gandhi Shramik Kalyan Yojana. Listed below are the applicable unemployment allowances:
- For a maximum period of one year, Unemployment Allowance equals 50% of wage.
- ESI hospitals/dispensaries will provide medical care for IP and family during the time period IP receives unemployment benefits.
- Provide vocational training to upgrade skills – ESIC pays for fees and travel allowances.
Here Read More Process benefits and requirements for esic registration