ESI Scheme and Salary Hike: Will Benefits Continue After an Accident?

Employee Salary and ESI Scheme Benefits

If the salary of an employee covered under the ESI scheme increases from Rs. 19,000 to Rs. 23,000 from January 2020, and after a while, the employee meets with an accident causing death, permanent disability, or temporary disability, will the employee still receive benefits under the ESI scheme or compensation under the Employees' Compensation Act? Will the employer be liable to undertake the expenses under such circumstances?

Yes, he can if you increase his salary from Rs. 19,000 to Rs. 21,000 from January 2020. You should pay his ESI contribution until the completion of the contribution period (i.e., March 2020). Hence, he will be eligible for all benefits under the ESI Scheme.

In ESIC, there are two contribution periods and corresponding two benefit periods. Your employee was in ESI until March 2020. I hope you continued his contributions until March 2020, even with an increase in salary beyond Rs. 21,000 in January 2020. You mentioned the employee met with an accident "after a while." Could you clarify what you mean by "after a while"?

If the accident occurred before March 2020, he is certainly entitled to all benefits under the ESI. However, if the accident occurred after April 2020, then the Insured Person (IP) is entitled to medical benefits until December 2020. Medical benefits include full medical care at an ESI hospital or with a panel doctor.

Entitlement to ESI Benefits

He is entitled to receive ESI benefits. If his contribution period ends in March 2020, he is entitled to receive benefits up to the corresponding benefit period.