Employees Provident Fund Scheme & Miscellaneous Provision

Act , 1952:
• To every establishment which is a factory engaged in any
industry specified in Scheme I and in which 20 or more
persons are employed.
• To any other establishment employing 20 or more persons
such other establishment which the Central Government by
notification specify giving not less than two months’ notice of
its intention to do so in the official Gazette.
ESI Act, 1948:

• The upper wage(excluding overtime) limit for coverage of any

employee under the Act is Rs. 6,500/- per month.

• The employee’s contribution is recovered from the wage and

the rate of contribution is 1.75% of the wages in respect of
every wage period and employer’s contribution is 4.75 % of the
wages.
•Wage period is the unit of contribution in respect of
employee’s as well as employer’s contribution.

• It must be understood and accepted that the Employees’

State Insurance Scheme is basically an insurance scheme.
Benefits under the scheme are linked with the payment period
of contribution & wage rates.
The scheme envisages a contribution period linked with a
corresponding benefit period. Both the contribution period and
the benefit period are spread over six months each.

Benefits of ESI:
• Medical Care
• Sickness Benefit
• Maternity Benefits
• Disablement Benefits
• Dependant’s Benefits
• Funeral Benefits.
Payment of Gratuity Act, 1972:

Continuous service: as uninterrupted service, including service

which may be interrupted on account of –
• sickness
• accident
• leave
•Absence not as break
• lay-off
• Strike
• lock-out
• cessation of work not due to any fault of the employee.
Maternity Benefit Act 1961:

Further on request from the woman the woman employer shall

not be given any work of the following nature:
• work involving long hours of standing
• any work which will effect her pregnancy
• any strenuous work

Leave & nursing breaks:

• leave for miscarriage of six weeks on production of proof
• The women suffering from any illness within pregnancy will be
allowed 1 months leave on production of proof.
• Nursing breaks will be allowed in course of daily work. Two
breaks of the prescribed duration for nursing the child attends
the age of 15 months.