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FAQs
Answers:
 
  (+) How are the Contributions collected ?
 
 

The Contribution is deposited by the Employer in cash or by cheque at the designated branches of some nationalized banks. The responsibility for payment of all contributions is that of the employer with a right to deduct the Employees' share of contributions from employees' wages relating to the period in respect of which the Contribution is payable.

 
  (+) What are 'Contribution Periods' and 'Benefit Periods ?
 
 
Workers, covered under the ESI Act, are required to pay contribution 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. Thus, in a financial year there are two contribution periods of six months duration.

Cash benefits under the scheme are generally linked with contributions paid. The benefit period starts three months after the closure of a contribution period. The two types of periods are iIIucidated 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


 
  (+) What is a Branch Office ?
 
 
A net-work of Branch Offices has been established by the Corporation in all implemented areas to disburse all claims for sickness, maternity, disablement and dependents' benefit. The Branch Office also answers all doubts and enquiries and assists otherwise infilling in claim forms and completing other action necessary in connection with the settlement of claims. These offices also interact with the employers of the area. The Branch Offices are managed by a Manager and work under the direction and control of the Regional Offices.

SOCIAL SECURITY BENEFITS
SICKNESS BENEFIT

 
  (+) What does 'Sickness Benefit' mean ?
 
 
Sickness signifies a state of health necessitating medical treatment and attendance and abstention from work on medical grounds. Financial support extended-by the Corporation is such a contingency is called Sickness Benefit.
 
  (+) What are the Contributory Conditions ?
 
 
The contribution condition required to be fulfilled for admissibility of sickness benefit during any benefit period is that contributions should have been paid in respect of an insured person in the corresponding contribution period for not less than 78 days.
 
  (+) How much is the Standard Benefit Rate ?
 
 

The daily rate of Sickness Benefit during any benefit period is the "standard benefit rate" this rate corresponds to the average daily wage of an insured person during the corresponding contribution period and is roughly half of the daily wage rate. Benefit is paid for Sundays also. 28 wage groups have been evolved for working out the daily rate of Standard Sickness Benefit. Standard Benefit rates for 28 wage groups are shown in Annexure 'A'.

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