Benefits available to an employee under ESI Act.
Dated: September 14, 2018
India has one of the most stringent and rigid labour laws in the world. Many provisions of the law are unique and so are the schemes provided with it. One such scheme is the Employees' State Insurance Scheme. This scheme provides more benefits to a person than any other scheme in the world. This scheme not only provides for medical benefits but also provides for financial security at the time of unemployment, disability, pregnancy, etc. Some of these benefits are listed below.
Medical Benefits : - ESIC provides for medical expenses of an individual from the day he has entered into the scheme by joining an insured employment. This insurance also take into consideration the medical care for family.
Sickness benefit : - 70% of average daily wages in cash during medical leave, upto 91 days in two consecutive benefit periods. This ensures that there is a continuous cash flow to the employee during the sickness period.
Maternity Benefit : - 100% of average daily wages in cash up to 26 weeks in confinement and 6 week in case of miscarriage, during maternity leave and 12 weeks for adopting mother.
Disablement Benefit : - In case of a temporary disablement, ESIC ensures that the employee gets monthly payment until the injury is healed and ready to get back to work; and in case of a permanent disablement, monthly payment for whole life of the employee.
Unemployment Allowance : - When there is involuntary loss of employment ESIC provides monthly cash allowance for the period of 24 months.
Dependent's Benefit: In case the employee meets with an untimely death due to an injury at the place of employment, ESIC will provide monthly payments apportioned among the surviving dependents.
Other benefits that are offered with ESI are:
- Confinement Expenses
- Funeral Expenses
- Physical Rehabilitation
- Vocational Training
- Skill Upgradation Training under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY)
Documents Required for ESI Registration:
The following documents are needed when registering a company or establishment with ESIC:
- Certificate of Registration (in case of a private limited company) of the company or establishment
- License or a registration certificate which can be obtained under the Shops and Establishment Act or the Factories Act
- Certificate of Registration for every entity and for the commencement of production of factories
- Detailed list of employees along with their monthly compensation
- List of partners, shareholders, and directors of the company or establishment
- The company's bank statements along with sufficient evidence about the commencement of operations
- Address proof and PAN Card of the business establishment or company
Procedure for ESI Registration:
An individual should follow the procedure listed below to initiate the ESI Registration of a company or establishment:
- The company can apply for ESI registration by duly filling up and submitting the Employer's Registration Form (Form-1).
- The employee can also access the PDF format of the form that is available on the website. Dully fill up the form and submit the same to ESIC on the official website.
- Once the application and documents have been verified, a 17 digit registration number will be provided to the organisation. Once the company or organisation has received their 17 digit number, they can file their ESI filings.
- Employees who are registered under the ESI scheme will receive an ESI card after they have submitted a form along with their photographs as well as details about their family members.
- Any new changes like the additions of employees, etc. will have to be intimated to the ESI.
Documents required for ESI Returns are listed below:
- Register for Form 6
- Attendance register
- Inspection book
- Register of wages
- Register of any accidents on the premises
- Returns and monthly challans submitted for ESI
Do's and Don’ts of ESI Scheme:
There are certain things that an employee has to follow to ensure that their run in the ESIC family goes smoothly.
Some of the things to keep in mind are:
- Pehchan Card acts as an employee's visa to their social security so it should be protected from theft or damage.
- An individual should ensure that they report a lost card to their Branch Office or Dispensary immediately.
- If an employee or worker who has an ESI Registration Number switches jobs, they should inform the new employer of the same.
- There are certain benefits which are provided based on the length of their contribution. So if the employee or worker switches jobs and registers themselves using the same ESIC number, the benefits which are related will be awarded to the employee.
- Referral procedures should be taken seriously.
- Follow the doctor’s instructions carefully.
- The employee or worker should ensure that they get their Form 105 signed by their employer in case the employee wishes to go on an outstation journey. This helps in case the employee or worker needs to avail ESI facilities in another region.
Ensure that you do not make these mistakes:
- The employee or worker should ensure that a non-eligible individual is not added to the employee's Declaration Form for the purpose of availing medical attention.
- It is important that the Pehchan Card is not defaced or tampered with in any way.
- The employee or worker should ensure that they do not lend their Pehchan Card to anyone.
- The employee or worker should not fake an injury or illness for the sole purpose of claiming benefits.
- Do not procure a fake or forged certification from a doctor.
- Touts should never be approached for favors.
- The employee or worker should ensure that they do not pay for an ESIC form as these are supplied for free at the Branch Office.
- The employee or worker should add or delete a family member in their declaration in case of a birth or death in the family respectively.