Introduction to the Employees' State Insurance Scheme
The Employees' State Insurance Scheme is an integrated measure of social insurance embodied in the Employees' State Insurance Act. It is designed to protect 'employees' as defined in the Employees' State Insurance Act of 1948 against the impact of sickness, maternity, disablement, and death due to employment injury. Additionally, it aims to provide medical care to insured persons and their families.
Coverage and Applicability
The ESI Scheme applies to factories and other establishments such as road transport, hotels, restaurants, cinemas, newspapers, shops, and educational/medical institutions where 10 or more persons are employed. However, in some states, the threshold limit for coverage of establishments is still 20. Employees of these categories of factories and establishments, drawing wages up to Rs. 15,000 a month, are entitled to social security cover under the ESI Act. The ESI Corporation has also decided to enhance the wage ceiling for coverage of employees under the ESI Act from Rs. 15,000 to Rs. 21,000.
Historical Background
The ESIC scheme was inaugurated in Kanpur on 24th February 1952 (ESIC Day) by the then Prime Minister Pandit Jawaharlal Nehru. Simultaneously, the ESIC scheme was launched in Delhi as well, with initial coverage for both centers being 1,20,000 employees. Our first Prime Minister was the first honorary insured person of the Scheme. The promulgation of the Employees' State Insurance Act of 1948 (ESI Act) by the Parliament was the first major legislation on social security for workers in independent India. This occurred at a time when the industry was still in a nascent stage, and the country was heavily dependent on an assortment of imported goods from developed or fast-developing countries.
Expansion and Current Status
Initially, the ESI Scheme was implemented at just two industrial centers in the country in 1952, namely Kanpur and Delhi. There has been no looking back since then in terms of its geographic reach and demographic coverage. Keeping pace with the process of industrialization, the Scheme today stands implemented at over 843 centers in 33 States and Union Territories. The Act now applies to over 7.83 lakh factories and establishments across the country, benefiting about 2.13 crore insured persons/family units. Currently, the total beneficiary count stands at over 8.28 crores.
Recent Developments
On 20th July 2015, Shri Narendra Modi, the Honorable Prime Minister, launched a series of health reform initiatives of ESIC at Vigyan Bhawan, New Delhi. The Health Reforms Agenda of ESIC includes the online availability of Electronic Health Records of ESI Beneficiaries (Insured Persons and their family members), and the launch of ESIC 2.0: Health Reform Agenda of ESIC.
From India, Thana
Acknowledge(0)
Amend(0)
59The Employees' State Insurance Scheme is an integrated measure of social insurance embodied in the Employees' State Insurance Act. It is designed to protect 'employees' as defined in the Employees' State Insurance Act of 1948 against the impact of sickness, maternity, disablement, and death due to employment injury. Additionally, it aims to provide medical care to insured persons and their families.
Coverage and Applicability
The ESI Scheme applies to factories and other establishments such as road transport, hotels, restaurants, cinemas, newspapers, shops, and educational/medical institutions where 10 or more persons are employed. However, in some states, the threshold limit for coverage of establishments is still 20. Employees of these categories of factories and establishments, drawing wages up to Rs. 15,000 a month, are entitled to social security cover under the ESI Act. The ESI Corporation has also decided to enhance the wage ceiling for coverage of employees under the ESI Act from Rs. 15,000 to Rs. 21,000.
Historical Background
The ESIC scheme was inaugurated in Kanpur on 24th February 1952 (ESIC Day) by the then Prime Minister Pandit Jawaharlal Nehru. Simultaneously, the ESIC scheme was launched in Delhi as well, with initial coverage for both centers being 1,20,000 employees. Our first Prime Minister was the first honorary insured person of the Scheme. The promulgation of the Employees' State Insurance Act of 1948 (ESI Act) by the Parliament was the first major legislation on social security for workers in independent India. This occurred at a time when the industry was still in a nascent stage, and the country was heavily dependent on an assortment of imported goods from developed or fast-developing countries.
Expansion and Current Status
Initially, the ESI Scheme was implemented at just two industrial centers in the country in 1952, namely Kanpur and Delhi. There has been no looking back since then in terms of its geographic reach and demographic coverage. Keeping pace with the process of industrialization, the Scheme today stands implemented at over 843 centers in 33 States and Union Territories. The Act now applies to over 7.83 lakh factories and establishments across the country, benefiting about 2.13 crore insured persons/family units. Currently, the total beneficiary count stands at over 8.28 crores.
Recent Developments
On 20th July 2015, Shri Narendra Modi, the Honorable Prime Minister, launched a series of health reform initiatives of ESIC at Vigyan Bhawan, New Delhi. The Health Reforms Agenda of ESIC includes the online availability of Electronic Health Records of ESI Beneficiaries (Insured Persons and their family members), and the launch of ESIC 2.0: Health Reform Agenda of ESIC.
From India, Thana
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employees' State Insurance Act 1948.doc
Employees' State Insurance Act 1948.pdf