Employees’ State Insurance Act, 1948

The Employees State Insurance Act of 1948 has been enacted with the objective of securing financial relief in cases of sickness, maternity, disablement and for providing medical benefits to employees of factories and establishments, and their dependents. The act is also applicable to non-seasonal factories using power and employing 10 or more employees, and non- power using factories and certain other establishments employing 20 or more employees. Employees and employers contributes to the scheme, and various benefits are given to eligible employees like, sickness benefit, maternity benefit, disablement benefit, etc. [18]All benefits are delivered thereof ESIs hospitals, clinics and approved independent medical practitioners.

Wage ceiling for coverage under the Employees’ State Insurance Act, 1948 has been enhanced from Rs.7500 to Rs.10000 per month.[19]

Maternity Benefits

The Act provides for periodical payments to an insured woman in case of confinement or miscarriage or related sickness. Workers covered by the Act can claim maternity benefit upto 70 percent of their salary. (Section 46)

Discharge from Employment

Employers are prohibited from dismissing, discharging, or otherwise punish an employee, during the period when the employee is in receipt of maternity benefit. (Section 70)



Human Resource Management (2009), Indian Adaptation, 11th edition, Gary Dessler & Biju Varkkey, Pearson Education.

Press Information Bureau, Government of India, Labour & Employment, Promoting Welfare of Workers. Retrieved January 21, 2009, from PIB online via


Also Check: Other Women Legislations


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