The major cause of distress for an employee during the period of his abstention from work is the loss of his/her wages. Hence, in order to assist an employee financially during this period and to provide him/her a financial backing the ESI Act 1948 was promulgated. The family members of the employee are also provided with medical care under this scheme. ESI Registration Benefits
Note : However, in some states the establishments with 20 or more employees are covered under this scheme. Also, there are certain states where the government has not extended scheme to Medical & Educational Institutions.
From the day an employee enters insurable employment, he/she and his/her family members are liable to get full medical care under this scheme. There is no upper limit set on expenditure on the treatment of an Insured Person or his/her family member. Retired and permanently disabled insured persons and their spouses are also provided with medical care under this scheme on payment of a token annual premium of Rs. 120/-.
As the name suggests, Sickness Benefit is provided during the periods of certified sickness in the form of cash compensation at the rate of 70 % of the wages which is payable to insured workers for a maximum of 91 days in a year. The insured worker is required to contribute for 78 days in a contribution period of 6 months in order to qualify for sickness benefit.
Funeral Expenses : From day one of entering insurable employment an amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites. Confinement Expenses : In case confinement of an Insured Woman or an I.P. in respect of his wife occurs at a place where necessary medical facilities under ESI Scheme are not available.
In addition, some other need based benefits are also provided to insured workers for example, vocational rehabilitation, physical rehabilitation, old age medical care and Rajiv Gandhi Shramik Kalyan Yojana, the scheme of Unemployment allowance