ESI Act 1948|Employee State Insurance Act|ESIC Login
The Employees State Insurance Act 1948 or ESI Act 1948 was enacted by the Parliament of India in 1948. This is a social welfare legislation for the workers across India.
Though enacted in 1948, this act went live from 2nd February 1952 firstly for two industrial centres of India such as Delhi & Kanpur. At that time the Employees State Insurance Corporation(ESIC) had to deal with approximately 1.20 lakh workers.
⇒What do you mean by ESI Act 1948?/Employees State Insurance Act 1948?
ESI is a self contributory or self-financed health insurance scheme solely meant for the workers across India. The contribution is made both from the employer and employee.
Employees State Insurance Act 1948 or ESI Act 1948 is a social welfare act enacted with a view to providing certain benefits among the workers.
So, the ESI Act 1948 is a Social Security Scheme for the protection and benefits of the employees of the organised sectors. This benefits may extend to their ailments, maternity causes and injury during employment or even death.
The benefits under this scheme are not only limited to the employees but also cover the dependent family members of the insured employees.
Therefore, this act ensures socio-economic justice in the form of ensuring ‘Right to work’, ‘Right to education’, for unemployment, old age, sickness and disablement.
This act is wider than Factory act. Since this act was established primarily for the benefits of the workers, one may inadvertently interchange this with the Factory Act.
But actually the ESI Act 1948 is much wider than the Factory act. Factory act is generally more concerned with the health, safety, welfare of the workers working in the factory only.
But the benefits under the Employee State Insurance Act extends to employees whether employed in the factory or elsewhere, whether they are directly employed by the principal employer or through an outside intermediary agency.
ESI Act 1948 or the Employee State Insurance Act is applicable to employees working inside the factory or elsewhere.
⇒ESI Applicability/ ESI Act Applicability
Firstly, the ESI Act 1948 is applicable to the whole of India. Now let’s see the criteria to fall under the purview of this act.
⇒More than 10 workers employed
As per Section 2(12) of the Employee State Insurance Act 1948, this act is applicable to non-seasonal power-consuming factories or manufacturing units where 10 or more persons are employed.
Also as per Section 1(5) of the ESI Act 1948 the following establishments where 10 or more persons are employed come under the purview of ESI coverage.
- Hotels or Restaurants only engaged in sales activity;
- Cinema including Theaters;
- Road Transport Motor establishments;
- Newspaper establishments;
- Private educational institutions.
⇒More than 20 workers employed
This act is also applicable to non-power using establishments where more than 20 persons are employed.
Therefore, a factory or establishment to which this Act applies shall be governed by this act irrespective of the number of persons employed therein falls below the threshold limit specified by the act.
Also, this act shall be continued for a manufacturing unit where the manufacturing process ceases to be carried on with the aid of power.
This is important to note that some of the states have made it 20 or more persons for coverage U/S 2(12) of the Employee State Insurance Act 1948.
Moreover, the appropriate state or central Govt. has the power to extend the coverage or give relaxation for ESI applicability. But no industry has the right to opt-out of this scheme.
If an employee is covered at the beginning of the contribution period, he would remain covered till the contribution period irrespective of the fact that his wages have increased and exceeded the threshold limit as prescribed by the Govt. from time to time.
For this purpose, the contribution period is shown as under:
|Contribution Period||Benefit Period|
|1st April to 30th September||1st January of the following year to 30th June|
|1st October to 31st March of the following year||1st July to 31st December|
⇒Who are eligible for ESIC?
All the employees of a covered unit, whose monthly wages excluding overtime payment does not exceed ₹21,000/- in a month are eligible for ESIC.
In case of daily wage earners whose daily wage does not exceed ₹176/- per day are exempted from ESIC contribution. However, the employers are liable to deposit their own share to the Employees State Insurance Corporation.
Sometimes this may happen that during the contribution period let’s say from 1st April to September, the monthly wages of an employee has exceeded ₹21,000/- and he received actual wages of ₹25,000/-.
In that case, his actual ESIC contribution would be on ₹25,000/- and not on ₹21,000/- till the contribution period i.e. September. So, after September his income is not exposed to any ESIC deduction or contribution.
But he will continue to get the desired benefits under the ESI Act 1948 till 30th June of the next year.
⇒What are the benefits under ESI Act 1948?
Employees State Insurance or ESI is a social security and health insurance scheme. Its primary objective is to extend the benefits to the maximum number of under-privileged employees across all sectors.
Therefore, it has been designed in such a way that all the employees covered under this scheme get adequate medical facilities for self and for their dependent family members.
Employees covered under ESI scheme are also entitled to get cash benefit in case of certain exigencies like loss of a job or earning capacity.
This scheme is also concerned for the women workers and extends maternity benefits to the female employees.
Further if due to the occupational hazards or diseases there comes death to an insured employee, this scheme provides family pension to the dependants.
⇒Benefits extended by the ESI Act 1948:
1. Medical benefit;
2. Dependent benefit;(Claim is made in Form 15)
3. Sickness benefit;(Claim is made in Form 9 )
4. Maternity benefit;(Claim is made in Form 19)
5. Disablement benefit;(Claim is made in Form 14 & Form 16)
6. Funeral expenses. (Claim is made in Form 22)
7. Unemployment benefit under Rajiv Gandhi Shramik Kalyan Yojna(RGSKY) (in Form US-1 and Form UA-2)
⇒Is ESI mandatory for employees?/Is ESIC compulsory?
The answer is YES. ESI is not the choice of an employee. Rather it is mandatory for establishments where more than 10 persons are employed or engaged.
Now, the question is whether each and every employee comes under the purview of ESI or not. In that case, the Employees State Insurance Corporation(ESIC) has clearly stated that ESI contribution is mandatory for those employees whose monthly wages do not exceed ₹21,000/- in a month.
However, for daily wage earners the average daily wage rate if exceeds ₹176/- per day, ESI contribution is to be deducted from their wages.
⇒What is the minimum salary for ESIC?/ How ESI is compulsory?
|Income Limit||ESI Applicability|
|Salaried person||If gross wages less than ₹21,000/- in a month|
|For Daily Wage earners||If daily wage rate exceeds ₹176/- per day|
⇒How ESI Contributions is collected?
Being a self-financing social security and health insurance scheme, ESI contributions are made both from the employer and the covered employee.
It is the duty of the respective employer to deduct the ESI contributions from the salary/wages of the employee(Insured Person or IP) and deposit the same to the Employees State Insurance Corporation(ESIC).
Also, the employer is responsible for contributing their share on the specified salary or wages of the employee to the ESIC.
⇒When the ESI Contributions are to be deposited?
Therefore, the employer has to deposit the combine (Employer & Employee) contributions to the Employees State Insurance Corporation(ESIC) within 15 days of the following month in which the deduction was made.
Such payments can be made either online ESIC login or through authorized designated branches of the State Bank of India and other banks.
⇒Employees State Insurance Act 1948 contribution calculations/ What is ESI coverage limit?
How the contribution is deducted as a percentage of gross wages paid to the employees, is shown in the table below
|For Salaried persons||₹18,000.00||Total contribution|
|Total ESI contribution||₹720.00|
|For Daily Wage earners||Wages @₹190/- per day||Total contribution|
|Employer’s contribution||(190*30 days)*3.25%)||₹185.00|
|Employee’s contribution||(190*30 days)*0.75%)||₹43.00|
|Total ESI contribution||₹228.00|
Read the below article if you want:
⇒How can I claim ESI?
The cost of such medical treatment is completely free and it will be entirely borne by the Employees State Insurance Corporation(ESIC).
However, due to some accidental emergency or due to unavailability of beds at the nearest ESI hospitals, if you have to visit private hospitals for treatment, you can claim the cost from ESIC from reimbursement.
Further, the ESI scheme provides benefits for unemployment under the Rajiv Gandhi Shramik Kalyan Yojna(RGSKY).
This payment of Unemployment Allowance is governed as per
Section 61 of the ESI Act 1948.
The unemployment allowance is payable for a maximum period of twelve months during the entire insurable employment of the insured person.
⇒Rules to claim ESI for unemployment
- To claim ESI benefits for unemployment, the insured person must have contributed to the ESI scheme at least for a period of 5 years before the loss of employment;
- The person claiming benefit for unemployment under the ESI Act must be an existing member of the ESI scheme when claiming;
- The minimum payment under RGSKY should not be less than 30 days or 1 month;
- The maximum payment shall not exceed 12 months for the entire insurable period of the insured person;
- This allowance ceases to be payable when the insured person is reemployed elsewhere.
⇒Can ESI be withdrawn?
ESI is a self-contributory health insurance scheme for the employees or workers of certain income level. By contributing to this ESI scheme, one is entitled to receive medical and other allied benefits for himself and also for family members.
Therefore, how can ESI be withdrawn? It can not be refunded. Only specified benefits against the contribution are provided. This can be compared with the term life insurance plans, where the only benefit is provided but not return of premium.
⇒Employees State Insurance Corporation(ESIC)
The Employees State Insurance Corporation or ESIC is the apex body to control, manage and govern the ESI Act 1948.
ESIC is the administered body to solely maintain and design the new rules and regulations as promulgated in the ESI Act 1948.
The Union Labour Minister is the Chairman of this corporation. ESIC comprises of members such as employees, employers, the central and state governments, representatives of parliament and eminent persons from the medical profession.
Now follow the below steps for ESIC login to the Employee portal.
Step-1: Click to the above link first for ESIC Login.
Step-2. Now you will see the below login page
Step-3. Now put your 10 digit ESIC Insurance Number(IP) as the User name and put the captcha.
Step-4. After login the below page will open
Step-5. Now click on the Contribution Status link and you will be taken to the following page.
In the above page, you can check the monthly wages amount and the contribution deposited for the employee throughout the contribution period.