Employement state insurance act 1948

8/7/2019 Employement state insurance act 1948

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Institute of managementand computer studies.

(IMCOST)


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FYBMS II SEM

DIV : A

ROLL.NO NAME

15 SONAL16 ANITA

17 AMIT

18 UTSAV

19 SIDHESH

20 AATHIRA

21 SHIVAM


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March 11March 11

THE EMPLOYEESTHE EMPLOYEES

STATESTATE

INSURANCE ACT,INSURANCE ACT,

19481948


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OBJECTIVEOBJECTIVETheThe objectobject of of thethe ActAct isis toto securesecure

sicknesssickness ,, maternitymaternity ,, disablementdisablement andandmedicalmedical benefitsbenefits toto employeesemployees of of factoriesfactories andand establishmentsestablishments andanddependentsdependents benefitsbenefits toto thethedependentsdependents of of suchsuch employeesemployees. .


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APPLICABILITYAPPLICABILITYToTo allall FactoriesFactories 1010 or or moremore &&

establishmentsestablishments employingemploying 2020 or or moremore employeesemployees. .

EveryEvery employeeemployee drawingdrawing wageswagesupup toto RsRs.. 1515,,000000//-- per per monthmonth. .


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Contribution under ESIContribution under ESIAct,1948Act,1948

1. Employees :1. Employees : 1.75%1.75% on total monthlyon total monthlywageswages

2. Employer :2. Employer : 4.75%4.75% on total monthly wageson total monthly wages


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Time & Method for payment of Time & Method for payment of

ContributionContribution

Mode of payment in cash or by cheque.Within 21 days

There are 2 copies of the payment

receipt one for the bank and other forthe organization.


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Procedure for RegistrationProcedure for Registration

DeclarationDeclaration of of RegistrationRegistration formform hashas toto bebe

filledfilled andand toto bebe sendsend toto thethe RegionalRegional OfficeOffice. .

withinwithin 1515 daysdays fromfrom thethe ActAct becomesbecomesapplicableapplicable to to itit andand theythey alsoalso getget employersemployerscodecode number number. .


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ADVANTAGES OF EMPLOYERS

1).Employers are absolved of their liabilities of providing medical facilities to employees and their dependents .

2). Employers are exempted from the applicabilityof the : -(a). Maternity Benefit Act(b). Workmen's Compensation Act

in respect of employee covered under the ESIScheme

3). Employers have their disposal, a productivity ,well secured workforce, an essential ingredient for better productivity


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ADVANTAGES OF EMPLOYERS

4). Employers are absolved of anyresponsibility in times of Physical distress of workers such as sickness, employment injuryor Physical disablement resulting in loss of wages, as the responsibility of Paying cashbenefits shits to the corporation in respect of insured employees


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Benefits to Employees

ESI Scheme Major Social Security Benefits in Cash andKind include

1. Medical Benefit for self & Family

2. Sickness Benefit for self

3. Maternity Benefit - for self

4. Disablement Benefita). Temporary Disablement Benefit for self b). Permanent Disablement Benefit for self

5. Dependents Benefit for dependents in case of death

due to employment injury


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Benefits to Employees

In addition, the Scheme also provides some other needbased benefits to insured workers. These are:

i). Funeral Expenses to a person whoperforms the last rites of IP

ii). Rehabilitation allowances for self

iii). Vocational Rehabilitation - for self

iv). Old age Medicare for self and spouse

v). Medical Bonus for insured women andIPs wife


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InsuredInsured employeesemployees isis entitledentitled toto receivereceive for for thethe periodperiodof of hishis sicknesssickness asas thethe dailydaily standardstandard benefitbenefit raterate..MinimumMinimum 7878 daysdays of of thethe correspondingcorresponding contributioncontribution isismustmust..

BenefitBenefit isis notnot availableavailable for for thethe firstfirst 22 daysdays of of sicknesssickness..MaximumMaximum periodperiod for for benefitbenefit isis 9191 daysdays inin oneone year year..StandardStandard benefitbenefit raterate :: TheThe dailydaily raterate whichwhich sicknesssickness

benefitbenefit isis payablepayable toto anan insuredinsured employeeemployee duringduring thetheperiodperiod of of hishis sicknesssickness..

L owestL owest raterate isis RsRs.. 1414//--HighestHighest raterate isis RsRs.. 195195//--

Sickness benefit


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Maternity Benefit is cash payable to an Insuredwomen for the specified period of abstentionfrom work for confinement or mis-carriage or

for sickness arising out of pregnancy

The contribution condition is the same as forSickness Benefit.

The daily benefit rate is double the sicknessBenefit rate and is thus roughly equivalent to

the full wages. Benefits is paid for Sundays also.

Ma ternity Benefit


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D is a blement Benefit

a). Temporary disablement benefit :

In case of temporary disability arising

out of an employment injury or occupational disease.,

The benefit is not subject to any

contributory condition and is payable at arate which is not less than 70% of dailyaverage wages.


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b)Permanent disablement benefit

In case an employment injury or

occupational disease results in permanent,partial or total loss of earning capacity,

Periodical payments are made to the IP for life at a rate depending on the actual loss of earning capacity as may be determined andcertified by a duly-constituted MedicalBoard.


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WhenWhen anan insuredinsured employeeemployee diesdies asas aa resultresultof of anan employmentemployment injury,injury, hishis widowwidow andandchildrenchildren andand inin casecase thethe employeeemployee doesdoes notnotleaveleave behindbehind himhim aa widowwidow or or children,children, hishisother other dependants,dependants, areare entitledentitled toto receivereceive

periodicalperiodical paymentspayments. .

D ependents benefit


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SicknessSickness of of InsuredInsured employeeemployee or or (where(wheremedicalmedical benefitsbenefits isis extendedextended toto hishis family)family) aamember member of of hishis familyfamily..

AvailableAvailable toto thethe employeeemployee duringduring anyany periodperiodfor for whichwhich contributionscontributions areare paidpaid inin respectrespect of of himhim or or inin whichwhich hehe cancan claimclaim sicknesssickness benefitbenefit. .

M edic a l benefit


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InIn casecase of of deathdeath of of anan insuredinsured employee,employee, thethe

eldesteldest survivingsurviving member member of of hishis family,family, andand if if

thethe employeeemployee hadhad nono familyfamily or or waswas notnot livingliving

withwith hishis familyfamily atat thethe timetime of of hishis death,death, thenthen

thethe personperson whowho actuallyactually incursincurs expenditureexpenditure onon

thethe funeralfuneral of of thethe employee,employee, is is entitledentitled toto

receivereceive thethe aa paymentpayment calledcalled funeralfuneralexpensesexpenses. .

MaximumMaximum permissiblepermissible amountamount of of suchsuch

paymentpayment isis RsRs.. 25002500/ /--

Fu ner a l expenses


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Benefits cannot beBenefits cannot be

combinedcombinedAnAn employeeemployee is is notnot entitledentitled toto receivereceive twotwobenefitsbenefits atat thethe samesame timetime.. ThatThat meansmeans hehecannotcannot receivereceive for for thethe samesame periodperiod. .

(a)(a) BothBoth sicknesssickness benefitbenefit andand maternitymaternity benefitbenefit; ;or or

(b)(b) BothBoth sicknesssickness benefitbenefit andand disablementdisablementbenefitbenefit for for temporarytemporary disablementdisablement; ; or or

(c)(c) BothBoth maternitymaternity benefitbenefit andand disablementdisablementbenefitbenefit for for temporarytemporary disablementdisablement. .


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OffencesOffencesIf If anyany personperson - -(a)(a) FailsFails toto paypay anyany contributioncontribution payablepayable byby himhim

under under thethe ActAct;; or or

(b)(b) DeductsDeducts fromfrom thethe wageswages of of anan employeeemployee thetheemployer'semployer's contributionscontributions ; ; or or

(c)(c) FailsFails toto submitsubmit anyany returnreturn requiredrequired byby thetheregulations,regulations, or or makesmakes a a falsefalse returnreturn. .HeHe wouldwould bebe punishedpunished withwith imprisonmentimprisonment upuptoto 11 year year or or withwith finefine upup toto RsRs.. 40004000//-- or or withwithbothboth


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Revision w.e.f.Revision w.e.f. 01 01..1212..20072007

1.1. TheThe dailydaily ratesrates of of sicknesssickness benefitbenefit asas givengivenunder under rulesrules 5555 hashas beenbeen increasedincreased byby 2020 per per centcent..

2.2. DailyDaily ratesrates of of disabilitydisability benefitsbenefits havehave beenbeenincreasedincreased toto 5050 per per centcent formform 4040 per per centcent..

3.3. DailyDaily ratesrates of of dependentsdependents benefitbenefit havehave beenbeen

increasedincreased toto 5050 per per centcent fromfrom 4040 per per centcent..4.4. FuneralFuneral expensesexpenses givengiven under under rulerule 5959 hashas beenbeenincreasedincreased toto RsRs.. 33,,000000//-- fromfrom RsRs.. 22,,500500//--


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THANK YOU.

Documents

Employement state insurance act 1948