The Employee State Insurance Corporation Scheme provides members financial protection in case of an untimely health-related eventuality. The scheme offers medical benefits, disability benefits, maternity benefits, unemployment allowance, etc. Advantages of ESIC to the Employers are as follows
Advantages of ESIC to employers
Employers who come under purview of the ESI Act, 1948, derive the following benefits under the Scheme:-
- Employers are absolved of all their liabilities of providing medical facilities to employees and their dependants in kind or in the form of fixed cash allowance, reimbursement or actual expenses, lump sum grant or opting for any other medical insurance policy of limited scope, unless it is a contractual obligation of the employer .
- Employers are exempted from the applicability of the 1) Maternity Benefit Act. 2) Employee’s Compensation Act, in respect of employees covered under the ESI Scheme.
- Employers have, at their disposal, a productive, well secured workforce- an essential ingredient for better productivity.
- Employers are absolved of any responsibility in times of physical distress of workers such as sickness, employment injury or physical disablement resulting in loss of wages, as the responsibility of paying cash benefits shifts to the corporation in respect of insured employees.
- Any sum paid by way of contribution under the ESI Act is deducted in computing ‘income’ under the Income Tax Act.
- Incentives Scheme for employers for persons with disabilities :
The Incentive Scheme for employers in private sector for providing employment to persons with disabilities has come into force w.e.f. 1.4.2008. Persons with disabilities employed on or after 1.4.2008 and drawing monthly wages upto Rs 25,000/- are covered under the scheme. Employers are exempted from paying employer’s share of contribution upto a maximum period of 3 years and the same is reimbursed to the corporation by the central Govt. These were some of the Advantages of ESIC to the Employers . If you wish to know more about ESIC and its benefits please click on the link below. https://compliancetrack.in/ct/index.php/2019/11/04/2-major-changes-in-esic-with-effect-from-1st-october-2019/