The object of the Act is to secure sickness, maternity, disablement and medical benefits to employees of factories and establishments and dependents benefits to the dependents of such employees.
Applicability of the ESI Act 1948
To all Factories & establishments employing 20 or more employees.
Every employee drawing wages (Gross Salary) upto Rs.21,000/- Per month.
Wages for ESI Contributions for ESI Act 1948 Registers/files to be maintained by the employer
To be deemed as Wages Basic Pay Dearness allowance, House rent allowance City compensatory allowance,Overtime wages (but not to be taken into account for determining the coverage of an employee)Payment for day of rest Production incentive / Bonus other than statutory bonus/ Night Shift allowanceHeat, Gas & Dust allowancePayment for unsubstitued holidaysMeal /Food allowanceSuspension allowanceLay off CompensationChildren education allowance (not being reimbursement for actual tuition fee)
Not to be deemed as Wages Contribution paid by the employer to any pension/ provident fund or under ESI Act.Sum paid to defray special expenses entailed by the nature of employement- Daily Allowance paid for the period spent on tour.Gratuity payable on dischargePay in lieu of notice of retrenchment compensationBenefits paid under the ESI SchemeEncashment of LeavePayment of Inam which does not form part of the terms of Employment Washing allowance for livery Conveyance Amount towards reimbursement for duty related journey
