The Employees’ State Insurance Act, 1948 provides for certain benefits to employees in case of sickness, maternity and disablement or death due to employment injury and to make provision for full medical care to insured persons and their families.
It is applicable to the whole of India. The Law is applicable to every company, factory, or establishment, employing 10 or more employees (20 or more in some states) with a salary up to Rs 21,000.
Sickness Benefit: Periodical payments to any insured person in case of his sickness certified by a duly appointed medical practitioner or by any other person possessing such qualifications and experience as the Corporation.
Maternity Benefit: Periodical payments to an insured woman in case of confinement or miscarriage or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage, such woman being certified to be eligible for such payments.
Disablement Benefit: Periodical payments to an insured person suffering from disablement as a result of an employment injury sustained as an employee under this Act and certified to be eligible for such payments.
Dependants’ Benefit: Periodical payments to such dependants of an insured person who dies as a result of an employment injury sustained as an employee under this Act.
Medical Benefit: Medical treatment for and attendance on insured persons.
Funeral Expenses: Payment to the eldest surviving member of the family of an insured person who has died, towards the expenditure on the funeral of the deceased insured person or, where the insured person did not have a family or was not living with his family at the time of his death, to the person who actually incurs the expenditure on the funeral of the deceased insured person.
This amount is calculated each month. To simply the math, assume that your basic salary is Rs.15,000 per month including dearness allowance.
Your ESI contribution
Your contribution towards ESI is 0.75% of Rs.15,000 which amounts to Rs. 112.50 each month.
Your employer’s EPF contribution
Your employer’s contribution towards ESI is 3.25% of Rs.15,000 which comes to Rs. 487.50 per month.
So, the Total ESI contribution (by you and your employer) for a month amounts to Rs. 600 (Rs. 112.50 + Rs. 487.50).