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ESI & Maternity Benefits Act Presentation

Jun 01, 2018

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  • 8/9/2019 ESI & Maternity Benefits Act Presentation

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    THE ESI ACT,1948

    &

    MATERNITY BENEFITSACT,1961

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    FLOW OF THE PRESENTATION

    ESI ACT,1948 Intro, Object, Scope

    Benefits,Rules, Amendments

    Calculation of ESI

    MATERNITY BENEFITS ACT

    Intro,Object and Scope Benefits,Rules and

    Amendments

    Calculation

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    EMPLOYEES STATE INSURANCE

    ACT,1948

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    OBJECTIVE & APPLICABILITY

    OBJECTIVE OF THE ACTTo provide for certain cash benefits to the employees in case of sickness, maternity,

    employment injury and medical facilities in kind and contains provisions for certain

    other matters having bearing thereon

    APPLICABILITY OF THE ACT The act applies to all factories employing 10 or more employees

    Does not apply to a mine, railway running shed and specified seasonal factories

    The term employee as defined in Sec.2(9) of the ESI Act has a wide connotation

    and would include within its scope every type of clerical, manual, technical and

    supervisory functions.

    Persons whose remuneration does not exceed Rs 15,000 a month are covered

    The Act does not make any distinction between technical or non-technical

    employees. There is also no distinction between those employed on time-rate or

    piece rate basis.

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    APPLICABILITY (Contd.) The following persons have been held to be employees within the meaning of Section

    2(9) of the ESI Act:

    Employees employed directly by the principal employer and those employed by or through acontractor on factory premises and those employed outside factory premises under supervision

    of principal employer.

    Also includes:

    Persons engaged in purchase of raw materials

    Administrative staff

    Persons engaged for distribution and sales of products and similar functions

    Doesnt include member of Indian Naval, Army or Air force

    The following can be deemed as wages:

    All remuneration paid in cash if terms of contract fulfilled

    Includes any payment in any period of authorized leave, lockout or strike which is not illegal

    Layoff compensation

    Other remuneration paid at intervals not exceeding two months

    Does not include:

    Contribution paid to PF or pension fund

    Travelling allowance or value of travelling concession

    Gratuity payable on discharge.

    Pa in lieu of notice of retrenchment com ensation

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    BENEFITS

    Medical

    Benefit

    Sickness

    Benefit

    Maternity

    Benefit

    Disablement

    Benefit

    Dependent

    Benefit

    Funeral

    Benefit

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    EXEMPTION of persons or class of persons

    (sec.88) App. Govt. is authorized to exempt any person or class

    of person from the operation of the act

    Any exemption granted shall be notified by the

    notification in the Official Gazette.

    Such person or class of persons must be working in a

    factory/establishment

    Any exemption granted shall be accompanied with

    such conditions as the appropriate Govt. may think fit

    to impose

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    EXEMPTION of a factory or establishment belonging

    to Govt./any local authority

    App.Govt. must consult the Corporation

    Any exemption granted shall be notified by the

    notification in the Official Gazette.

    Exemptions shall always be subj. to the conditions

    imposed by the Govt.

    Exemptions shall always be in order only if the

    employees in any such factory/establishment are

    already in receipt of benefits substantially similar or

    superior to the benefits provided under this act.

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    EXEMPTION from one or more provisions of the act

    (sec.91)

    Exemption may be granted to any factory or

    establishment or any person or class of personby

    App.Govt.

    Any exemption granted shall be notified by the

    notification in the Official Gazette.

    Any exemption granted under the sec.87,88,90 or 91in respect of any person or class of person may be

    enforced either prospectively or retrospectively the

    date of its enforcement has to be specified (sec.91-A)

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    CALCULATION OF ESIEmployee's State Insurance Definition:

    Employee's State Insurance scheme is a self-financing social

    security and health insurance scheme for Indian workers. Anylabour who earns below Rs 15000 as his or her monthlysalary will be covered under the ESI. Both the employer andemployee donate for ESI. Employer's contribution is around4.75% and employee's contribution is 1.75%.

    Example 1:Find out the ESI for the gross salary of Rs 9,000?

    Step 1:

    Enter the salary, For e.g. 9,000

    Step 2:

    Employee contributes 1.75% for ESI. Now compute as shownhere, ESI = 9,000*(1.75/100) = 158

    Step 3:

    Employer contributes 4.75% for ESI. Compute as shown here,

    ESI = 9,000*(4.75/100) = 428

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    In case the salary goes above Rs. 15,000, say to Rs 17,000,

    during the contribution period, should we calculate ESI

    on the actual salary (Rs 17,000) or should the salary be

    restricted to Rs 15,000 for ESI calculation? ESI should be calculated on total ESI salary and the

    salary should not be restricted to Rs 15,000 in case the

    salary goes above Rs 15,000.

    If the total ESI salary is Rs 17,000, ESI deduction and

    contribution should be calculated on Rs 17,000 and not

    on Rs 15,000.

    Payroll managers should note that employees get

    additional benefits on the ESI amount calculated on salary

    above Rs 15,000.

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    POINTS TO KEEP IN MIND-

    Once the ESI contribution begins, the contribution shouldcontinue until the end of the contribution period (Apr to

    Sep or Oct to Mar) even if the salary (for the purpose of ESI

    calculation) increases beyond Rs 15,000 per month during

    the contribution period.

    During the contribution period ESI should be calculated on

    total ESI salaryand the salary should not be restricted to

    Rs 15,000 in case the salary goes above Rs 15,000.

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    MATERNITY BENEFITS ACT,1961

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    PURPOSE & OBJECTIVE

    PURPOSE OF THE ACT

    The Maternity Benefits Act, 1961 provides benefits aimed

    to protect the dignity of motherhood by providing for the

    full and healthy maintenance of women and her child when

    she is not working.

    OBJECTIVE OF THE ACT

    An act to regulate the employment of women in certainestablishment for certain period before and after child

    birth and to provide for maternity benefit and certain other

    benefits

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    SCOPE OF THE ACT

    - It is applicable to mines, factories, circus industry,

    plantations, shops and establishments employing ten or

    more persons

    - It can be extended to other establishments by the State

    Governments with the approval of the Central Government,

    after giving not less than two month's notice of itsintention of so doing, by notification in the Official Gazette

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    BENEFITS UNDER THE ACT

    (A) Monetary Benefits

    84 Days Leave with pay before/after delivery.

    A medical bonus of Rs. 1,000/-

    Take the pay for 6 weeks after/before child birth within 48

    hrs of request An additional leave with pay up to one month

    [Proof of illness]

    In case of miscarriage -Six weeks leave with average pay.

    Tubectomy operation -Leave with wages @ of maternitybenefit for a period of 2 weeks.

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    (B) Non Monetary Benefits

    Light work for 10 weeks (6 weeks plus 1 month)

    before delivery.

    2 Nursing breaks of 15 Minutes until the child is 15

    months old. No discharge or dismissal while on maternity leave.

    No charge to her disadvantage in any conditions of

    her employment while on maternity leave.

    Pregnant women discharged or dismissed may stillclaim maternity benefit from employer.

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    FORFEITURE

    A Female can be deprived of maternity benefit:

    1. If she works in other establishment after going onmaternity leave

    2. During her period of pregnancy, she is dismissed for gross

    misconduct. Willful destruction of employers assets

    Assaulting any superior or co worker

    Criminal offence involving moral turpitude

    Theft, fraud or dishonesty

    3. Within 60 days from date of deprivation of maternitybenefit, any Women can appeal to the authority prescribed bylaw. The decesion of such authority will be final.

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    DUTIES & PENALTIES OF EMPLOYER

    Pay Maternity benefit and/ or medical bonus

    Give nursing breaks

    Do not dismiss and discharge a pregnant woman.

    Prepare and maintain the prescribed registers and recordsand submit prescribed returns

    Violations of the provisions of the Maternity Benefit Act,1961 can be punishable with imprisonment of 3 months -1Year or with fine to Rs. 500 or both.

    Beside, if the violation is related to non-payment of thematernity benefit or any other amount, the court canrecover this amount as if it is a fine and pay it to theaggrieved party/person

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    AMENDMENTSShort title and commencement.

    (1) This Act may be called the Maternity Benefit (Amendment)Act, 2008.

    (2) It shall come into force on such date as the Central

    Government may, by notification in the Official Gazette, appoint

    2. Substitution of new section for section 8.

    Payment of medical bonus.

    (1) Every woman entitled to maternity benefit under this Act

    shall also be entitled to receive from her employer a medical

    bonus of one thousand rupees, if no pre-natal confinement

    and post-natal care is provided for by the employer free ofcharge.

    (2) The Central Government may before every three years, by

    notification in the Official Gazette, increase the amount of

    medical bonus subject to the maximum of twenty thousandru ees.

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    ARTICLE GIST: Penalised for PregnancySource:

    http://www.telegraphindia.com/1120807/jsp/nation/story_15824271.jsp#.VDQNIvmSyME

    Indrani Chakraverty had been working for a Delhi designfirm for four years. Suddenly in August 2009, when she wascarrying her first child, she was told over phone that she wassacked.

    She filed a criminal case against the firm-for violating theMaternity Benefit Act, 1961, which forbids an employer fromterminating the services of a pregnant woman unless there arecomplaints of gross misconduct against her.

    The only thing that changed was I was pregnant and unable togive them the 24x7 time I gave them earlier. Also, its not that Ididnt work while I was pregnant. I delivered the CWG designsjust before I was terminated.

    On July 26, Indrani won Rs 7.5 lakh as settlement money fromthe company on orders from Delhi High Court.

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    THANK YOU!