The Employees State Insurance Act (Act) in India provides for a
scheme of health insurance and cash benefit payments to industrial
workers in case of sickness, maternity and employment injury.
The cash benefits under the Act are administered by the Central
Government through the Employees State Insurance Corporation
(ESIC), whereas the State Governments and Union Territory
Administrations administer medical care.
ESIC is the principal social security organization in the
country responsible for making policies and taking decisions under
the Act. The body oversees the functioning of the Employment State Insurance Scheme under
On September 6, 2016, the ESIC raised the monthly wage threshold
to INR 21,000, from the current INR 15,000 for coverage under its
health insurance scheme. ESIC's board has also decided to
give an option to existing insured persons to continue membership
even if their monthly wage breaches the new threshold of INR 21,000
per month. At present, those individuals insured under the
ESIC scheme lose their membership of ESIC as well as that of the
insurance cover if their wage exceeds the ceiling of INR 25,000 per
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The presumption by the employer that the employee is not interested in the job when he/she is absent from work for a long duration without the authorization of the employer, has been considered as reasonable.
The constitutional principle of ‘equal pay for equal work' has been upheld by the Supreme Court of India ("SC") with respect to temporary employees' vis-à-vis permanent employees in the government sector.
On 31 December 2015 the President gave his assent to certain amendments to the Payment of Bonus Act, 1965. The amendments have increased the wage threshold for determining applicability of the Act from INR 10,000 to INR 21,000 per month.
The Payment of Bonus Act, 1965 provides for the payment of statutory bonus to eligible employees. The bonus payable is to be determined on the basis of profits or on the basis of production or productivity of the establishment.
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