One employee is in ESIC until September, and from October, he is removed from ESIC contributions. Can he still be eligible for ESIC benefits in November? Please explain.
Employees covered under the ESI Act are required to pay contributions towards the scheme on a monthly basis. A contribution period means a six-month time span from 1st April to 30th September and 1st October to 31st March.
Cash benefits under the scheme are generally linked to contributions paid. The benefit period starts three months after the closure of a contribution period. The two types of periods are elucidated below:
Contribution Period Benefit Period
1st April to 30th September 1st January to 30th June of the following year
1st October to 31st March 1st July to 31st December
The benefit period corresponding to the contribution period from April to September is from January 2023 to June 2023. Hence, if the employee had paid the required contribution (e.g., 78 days for sickness benefit) between April and September 2022, they will receive benefits until June 2023.
Dear Sir, Thank you for your erudite and knowledgeable reply, which is useful for my understanding.
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