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1. The Employee State Insurance Act,
1948

2. Objective & Types of Benefits to
insured employee
• The following major benefits are provided under The
E.S.I. Act, 1948.
1. Sickness benefit 2. Maternity benefit
3. Disablement benefit 4. Dependents benefit
5. Medical benefit 6. Funeral expenses
To provide benefits to employees in case of sickness,
maternity and injury during employment.

3. E.S.I. Share of Contribution
• Employee’s share : 1.75%
Employer’s share : 4.75%
Total : 6.50%
All employees drawing gross salary of Rs.15000/-p.m.
or less are covered.
Contribution period Corresponding benefit period
1st April to 30 September 1st January to 30th June of the
year following
1st October to 31st March of the
year following
1st July to 31st December of the
calendar year

4. Sickness benefit
• Every insured employee is entitled to the cash benefit for the
period of sickness certified by a duly appointed medical
practitioner if the contributions in respect of him were
payable for not less than 78 days in the corresponding
contribution period.
• Cash benefit takes the form of periodical payment made to
an insured person which is payable for maximum numbers of
91 days in any two consecutive benefit periods. The benefit is
not paid for the first two days of sickness which is treated as
the waiting period.
• Insured persons suffering from long term diseases like T.B.,
leprosy, mental, heart etc. and who have been continuous
employment for two years are entitled to get sickness benefit
period up to 309 days.

5. Maternity benefit
• A periodical cash benefit is payable to an insured woman
employee, in case of confinement, miscarriage, medical
termination of pregnancy, premature birth of a child or
sickness arising from pregnancy etc.
• Maternity Benefit for confinement/pregnancy is payable for
three months, which is extendable by further one month on
medical advice at the rate of full wage subject to contribution
for 70 days in two immediately preceding contribution periods
• Female employee has to contact her E.S.I. dispensary. It is not
compulsory that she takes medical treatment from E.S.I..

6. Disablement benefit
• It is payable to an employee who is injured in the course of his
employment and is permanently or temporarily disabled or
contacts any occupational disease.
• A person who sustains temporary disablement for not less
than 3 days(excluding the day of accident) shall be entitled to
periodical payment as may be prescribed by the central govt.
• The benefit of temporary disablement is, however, not
payable for any day on which the employee works, remains on
lease, holiday or strike in respect of which he receives wages.

7. Benefits
• Disablement Benefit Temporary disablement benefit (TDB) :
From day one of entering insurable employment &
irrespective of having paid any contribution in case of
employment injury. Temporary Disablement Benefit at the
rate of 90% of Standard benefit rate is payable so long as
disability continues.
• Permanent disablement benefit (PDB) : The benefit is paid in
the form of monthly payment depending upon the extent of
loss of earning capacity as certified by a Medical Board

8. Dependents benefit
• If any employee dies during the course of employment any
period for which he is entitled to a cash benefit , the amount
of such benefit shall be payable up to & including the day of
his death.
• The amount of benefit shall be paid to the nominee or, where
there is no nomination, to the heir or legal representative of
the deceased employee.
• DB paid at the rate of 90% of Standard benefit rate in the form
of monthly payment to the dependants of a deceased Insured
person in cases where death occurs due to employment injury
or occupational hazards.

9. Medical benefit
• Full medical care is provided to an Insured person and his
family members from the day he enters insurable
employment. There is no ceiling on expenditure on the
treatment of an Insured Person or his family member.

10. Funeral Expenses
• If an insured employee dies, the eldest serving member of his
family is entitled to reimbursement of such expenditure
subject to maximum of Rs.10000/-
• The claim for the funeral expenses should be submitted with
prescribed document and form within three months of the
death of the insured employee.