8 Apr 2023

The object of the Act is to secure sickness, maternity, disablement and medical benefits to employees of factories and establishments and dependents’ benefits to the dependents of such employees.

Six kinds of benefits are provided under the Act:

Sickness benefit Maternity benefit Disablement benefit Dependents’ benefit Medical benefit and Funeral expenses.

1. Sickness benefit : • Insured employees is entitled to receive for the period of his

sickness as the daily “standard benefit rate”.• Minimum 78 days of the corresponding contribution is must.• Benefit is not available for the first 2 days of sickness.• Maximum period for benefit is 91 days in one year. Standard benefit rate” : The 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/-

2. Maternity benefit : • Confinement, miscarriage or medical

termination of pregnancy,• Sickness arising out of pregnancy,

confinement, premature birth of child or miscarriage or medical termination of pregnancy.

• Minimum 80 days in the immediately preceding two consecutive contribution periods is must.

• Maximum period for benefit is 91 days in one year.

3. Disablement benefit : • 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).

• Benefit for the whole of life.

4. Dependents’ benefit :• When an insured employee dies as a result

of an employment injury, his widow and children and in case the employee does not leave behind him a widow or children, his other dependants, are entitled to receive periodical payments.

5. Medical benefit :• Sickness of Insured employee or (where

medical benefits is extended to his family) a member of his family.

• Available to the employee during any period for which contributions are paid in respect of him or in which he can claim sickness benefit.

6. Funeral expenses :• 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 the a payment called “funeral expenses”.

• Maximum permissible amount of such payment is Rs. 2500/-

An employee is not entitled to receive two benefits at the same time. That means he cannot receive for the same period.

(a) Both sickness benefit and maternity benefit; or

(b) Both sickness benefit and disablement benefit for temporary disablement; or

(c) Both maternity benefit and disablement benefit for temporary disablement.

Form 1declaration form.

Form 3 return of declaration

form. Form 6 return of contribution

[half yearly returns]. Form 16

application for accident report.

Form 37 certification of employment. Form 53application for change of dispensary branch

office. Form 72application for duplicate ESI card. Form 1Bchange in family declaration report.

If any person -(a) Fails to pay any contribution payable by him

under the Act; or(b) Deducts from the wages of an employee the

employer's contributions ; or(c) Fails to submit any return required by the

regulations, or makes a false return. He would be punished with imprisonment

upto 1 year or with fine upto Rs. 4000/- or with both

1. The daily rates of sickness benefit as given under rules 55 has been increased by 20 per cent.

2. Daily rates of disability benefits have been increased to 50 per cent form 40 per cent.

3. Daily rates of dependent’s benefit have been increased to 50 per cent from 40 per cent.

4. Funeral expenses given under rule 59 has been increased to Rs. 3,000/- from Rs. 2,500/-

THANK YOU.