CHAPTER I - Short title and extent & Definitions



EMPLOYEES' STATE INSURANCE (CENTRAL) RULES, 1950 

I n exercise of the powers conferred by section 95 of the Employees' State Insurance Act, 1948 (XXXIV) of 1948), the Central Government is pleased to make the following rules, : 

CHAPTER I
1. Short title and extent 

(1) These rules may be called the Employees' State Insurance (Central) Rules, 1950.
(2) They extend to the whole of India.

2. Definitions 

In these rules, unless there is anything repugnant in the subject or context,

(1) "the Act" means the Employees' State Insurance Act, 1948 (34 of 1948);

(1A) "average daily wages during a contribution period" means, in respect of any employee for the purpose of the daily rate of sickness benefit, maternity benefit, disablement benefit and dependant's benefit, the sum equal to one hundred and fifteen per cent of the aggregate amount of wages payable to him during that period, divided by the number of days (including paid holidays and leave days) for which such wages were payable.

(1B) "average daily wages during a wage period" means--

(a) in respect of an employee who is employed on time-rate basis, the amount of wages which would have been payable to him for the complete wage period had he worked on all the working days in that wage period, divided by 26 if he is monthly rated, 13 if he is fortnightly rated, 6 if he is weekly rated and 1 if he is daily rated;

(b) in respect of an employee employed on any other basis, the amount of wages earned during the complete wage period in the contribution period divided by the number of days in full or part for which he has worked for wages in that wage period:

PROVIDED that where an employee receives wages without working on any day during such period, he shall be deemed to have worked for 26, 13, 6 or 1 days or day if the wage period be a month, a fortnight, a week or a day respectively.

Explanation : Where any night shift continues beyond midnight, the period of the night shift after midnight shall be counted for reckoning the day worked as part of the day preceding;

(1C) "benefit period" means the period not exceeding six consecutive months corresponding to the contribution period, as may be specified in the regulations;

(2) "chairman" means the Chairman of the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be;

(2A) "contribution period" means the period not exceeding six consecutive months, as may be specified in the regulations;

(3) "form" means a form appended to these Rules;

(4) "fund" means the Employees' State Insurance Fund;

(5) "government securities" means government securities as defined in the Indian Securities Act, 1920;

(6) "immovable property" includes land, benefits to arise out of land, things attached to the earth, or permanently fastened to anything attached to the earth;

(7) "movable property" means property of every description except immovable property;

(7A) "standard benefit rate" means the daily rate of benefit specified in rule 54;

(8) "state medical commissioner" means a duly registered medical practitioner including a medical officer in the service of the State Government appointed as such by the Corporation;

(9) "year" shall mean the financial year, that is to say, the period beginning from the first of April and ending with the thirty-first of March of the year following;

(10) all other words and expressions shall have the meanings respectively assigned to them in the Act.


If you enjoyed this post and wish to be informed whenever a new post is published, then make sure you subscribe to my regular Email Updates. Subscribe Now!



Thanks For Making This Possible! Kindly Bookmark and Share it:

Technorati Digg This Stumble Facebook Twitter Delicious
YOUR ADSENSE CODE GOES HERE
 

About Me

Recent Posts

APPLICABILITY OF THE ACT & SCHEME:

 Is extended in area-wise to factories using power and employing 10 or more persons and to non-power using manufacturing units and establish-ments employing 20 or more person upto Rs.15,000/- per month w.e.f. 01.04.10. It has also been extend-ed upon shops, hotels, restaurants, roads motor transport undertakings, equip-ment maintenance staff in the hospitals.

COVERAGE OF EMPLOYEES:

 Drawing wages Upto Rs.15,000/- per month Engaged either directly or thru’ contractor

RATE OF CONTRIBUTION OF THE WAGES:

 Employers’ 4.75%

 Employees’ 1.75%

MANNER AND TIME LIMIT FOR MAKING PAYMENT OF CONTRIBUTION:

 The total amount of contribution (employee’s share and employer’s share) is to be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on ore before 21st of month following the calendar month in which the wages fall due.

BENEFITS TO THE EMPLOYEES UNDER THE ACT:

 Medical Benefit
 Sickness Benefit(SB)
 Maternity Benefit(MB)
 Disablement Benefit
 Dependants’ Benefit(DB)
 Funeral Expenses

 In addition, the scheme also provides some other need based benefits to insured workers.

WAGES FOR ESI CONTRIBUTIONS:

 Registers/files to be maintained by the employers

CONTRIBUTION PERIOD:

 If the person joined insurance employment for the first time, say on 5th January, his first contribution period will be from 5th January to 31st March and his corresponding first benefit will be from 5th October to 31st December.

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 allowance
• Heat, Gas & Dust allowance
• Payment for unsubstituted holidays
• Meal/food allowance
• Suspension allowance
• Lay off compensation
• Children education allowance (not being reimbursement for actual tuition fee)

NOT TO BE DEEMED AS WAGES:

• Contribution paid by kthe employer to any pension/provident fund or under ESI Act.
• Sum paid to defray special expenses entailed by the nature of employment – Daily allowance paid for the period spent on tour.
• Gratuity payable on discharge.
• Pay in lieu of notice of retrenchment compensation
• Benefits paid under the ESI Scheme.
• Encashment of leave
• Payment of Inam which does not form part of the terms of employment.
• Washing allowance for livery
• Conveyance Amount towards reimbursement for duty related journey

PENALTIES :

 Different punishment have been prescribed for different types of offences in terms of Section 85: (I) (six months imprisonment and fine Rs.5000), (ii) (one year imprisonment and fine), and 85-A: (five years imprisonment and not less to 2 years) and 85-C (2) of the ESI Act, which are self explanatory. Besides these provisions, action also can be taken under section 406 of the IPC in cases where an employer deducts contributions from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust.

Recent Comments

| THE ESIC ACT, 1948 © 2009. All Rights Reserved | Template by My Blogger Tricks .com |