Understanding ESIC Act: How Are Sickness Wages and Dependent Pensions Calculated?

Understanding Sickness Wages and Dependent Pensions

Please let me explain how sickness wages and dependent pensions are calculated. If an employee works in an establishment under the ESIC Act and leaves the organization within 15 days, how long will they be covered for?

Thank you.

In terms of Rule 55 of ESI Rules, an employee who is insured will be eligible for sickness benefit only when contributions are payable for 78 days during the corresponding contribution period. In this case, the employee has left within 15 days of joining, and in my view, he is not entitled to any sickness benefit. The dependent benefit is admissible in the case of the death of an employee due to an employment injury.

Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
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