ESIC Benefits

The section 46 of the Act provides six social security benefits. They are as follows:

• Medical Benefit: From the day an insurable employee enters, since that day he and his  family are provided with full medical care to him and his family. Medical care is also  provided to retired and permanently disabled insured person and their spouses. [on  payment of Rs. 120 as an annual token] 
• Sickness Benefits: This is a form of cash compensation at the rate of 70% of wages is  payable to insured workers during the period of maximum 91 days in a year which is  certified sickness period.
• Maternity Benefit: Maternity benefit for pregnancy is payable for 26 weeks, which is  extendable by one month on medical advice at full wage subject to contribution for 70  days in the preceding 2 contribution periods.
• 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 wage is payable so long as disability continues.
  • Permanent disablement benefit (PDB) : The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board.
• Dependents Benefit: It is paid at the rate of 90% of wage in the form of monthly payment to the dependent of the deceased Insured person in case of death occurring due to employment injury.
• Other Benefits:
  • Funeral expense: Here the employee’s dependents are paid Rs.15000/- to perform the last rites from day one of entering insurable employment.
  • Confinement expense: If necessary medical facilities under ESI Scheme are not available for the confined, then an insured woman or an I.P [ESIC insurance number] in respect of his wife in case of confinement.

There are other benefits also under the scheme, which are provided to the insured  workers.

• Vocational Rehabilitation: To permanently disabled Insured person for undergoing  VR training at VRS (Voluntary Retirement Scheme).
• Physical Rehabilitation: In case of physical disablement due to employment injury. c) Old Age Medical Care: For the insured person retiring on attaining the age of  superannuation under VRS/ERS (Employers Registration Form) and person having to  leave the service due to permanent disability insured person & spouse on payment of  Rs. 120/- p.a.

Rajiv Gandhi Shramik Kalyan Yojana: On 01/04/2005, this scheme was introduced.  An insured person who become unemployed after being insured three or more years, due  to closure of factory, retrenchment or permanent invalidity are entitled to:

• Unemployment Allowance equal to 50% of wage for a maximum period of up to Two  Years.
• Medical care for insured and family from ESI Hospitals/Dispensaries during the  period IP receives unemployment allowance.
• Vocational Training provided for upgrading skills – Expenditure on fee/travelling  allowance borne by ESIC.

Atal Beemit Vyakti Kalyan Yojana (ABVKY): This scheme was introduced in 01/07/2018  on pilot basis for a period of two years. It has now been extended for another year i.e., from  01/07/2020 to 30/06/2021. This scheme is a welfare measure for employees covered under  Sec2(9) of ESI act, 1948. It is in the form of relief payment up to 90 days, once in a lifetime.

• It has been decided to enhance the rate of unemployment relief under the scheme to  50% of wages from earlier rate of 25% along with relaxation in eligibility conditions,  provided the Insured person should have been in insurable employment for a  minimum period of two years immediately before his/her unemployment and should  have contributed for not less than 78 days in the contribution period immediately  preceding to unemployment and minimum 78 days in one of the remaining three  contribution periods in two years prior to unemployment.
• In a significant relaxation, relief shall become due to payment after 30 days from date  of unemployment and claim can be submitted directly to the designated ESIC branch  office by the worker. The enhanced benefit and relaxed conditions are applicable  during the period 24/03/2020 to 31/12/2020. Claims to get the relief can be made  online at www.esic.in along with submission of the physical claim with an affidavit,  photocopy of Aadhar Card and Bank Account details to the designated ESIC branch  Office by the post or in person.

Incentive employers in Private sector for providing regular employment to the persons with  disability:

• Minimum wage limit for Physically Disabled Persons for availing ESIC Benefits is  25,000/-.
• Employers’ contribution is paid by the Central Government for 3 years.

Benefits & Contributory Conditions:

An interesting feature of the ESI Scheme is that the contributions are related to the paying  capacity as a fixed percentage of the workers’ wages, whereas, they are provided social  security benefits according to individual needs without distinction. 

Cash Benefits are disbursed by the Corporation through its Branch Offices (BOs) / Pay  Offices (POs), subject to certain contributory conditions.