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Coverage |
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COVERAGE UNDER THE ESI ACT, 1948 |
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The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons. Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons. The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).
AREAS COVERED:
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COVERAGE : |
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No. of Employers |
27476 (as on 31.3.2005) |
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No. of Employees |
706900 ( ’’ ) |
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Total No. of Beneficiaries |
32.27 lakhs ( ’’ ) |
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No. of Insured Persons Male Female |
807100 ( ’’ ) 570153 236947 |
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COVERAGE OF FACTORIES |
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The Act in the first instance applies to all
non-seasonal factories, using power and employing 10 or more persons, and to
non-power using factories employing 20 or more persons for wages on any day
in implemented areas. There is an enabling provision in the Act under Section
1(5) to extend to other classes of establishment – industrial, commercial,
agricultural or otherwise. Most of the State Govts.
have extended the provision of the Act to the
following class of establishments, i.e., shops, hotels, restaurants, cinemas
including preview theatres, road-motor transport agencies, newspaper
establishments employing 20 or more persons. A factory once covered remains covered even if the
number of employees at any later stage falls short of the stipulated number
of 10 or 20 or the manufacturing process therein ceases to be carried on with
the aid of power. The Act does not apply to workers engaged in mining
operations, railway running sheds, certain seasonal factories operating for
less than 7 months in a year. Factories or establishments run by the State Govts./ Central Govt. whose
employees are in receipt of social security benefits substantially similar or
superior to those provided under the Act can be exempted from coverage. |
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COVERAGE OF EMPLOYEES |
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A monthly wage limit is prescribed by the Central Govt.
for the purpose of coverage of employees/workers of the aforesaid factories
or establishments. An employee has been defined under Section 2(9) of the Act
and means any person employed for wages in or in connection with the work of
a factory or establishment to which this Act applies. The wage ceiling is
enhanced from time to time. The existing ceiling effective from 1.4.2004 is Rs.7,500/- per month |