What is employee state insurance scheme?

Question

What is employee state insurance scheme?

Answer 1

As the name indicates, it is a scheme for the benefit of the employees.  It is governed by the Employees State Insurance Scheme, 1948 act.  The act is passed by Central Government and its implementation is done by State Governments.

But the name is little bit confusing.  It is a scheme for the benefit of workers in the state, accordingly it is not related to the employees of state government.  It is applicable to the establishments where 20 or more than 20 persons are employed and no electrical power is consumed for manufacture or sale of the products.  If power is used then the strength required for applicability is 10.

Certain percent of salary is deducted from the salary of the employee and a complementary contribution is made by the establishment and is paid to the State Government.  Again as suggested by in the name it is like insurance.  From the fund created by the amount deducted from employees and contribution made by the employers, some benefits in the nature of health insurance are given to the employees, in case they become ill.  Medicines are given free of cost to the employees.  If the illness is longer (more than 2 days) and the workers remains absent from duties due to illness, he is compensated in certain percentage as his wages are lost for those days.  In certain cities hospitals are run by the ESI corporation where treatment is given free of cost to the employees who are covered under the scheme.

Certain other benefits like pregnancy benefits etc are also given.  Death benefits, reimbursement on account of funeral expenses etc etc are some other benefits.

I hope I have explained the basics in simple language.

Answer 2

I don't know. Care to explain?