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Employee's State Insurance Act, 1948

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HomeBrud.gifIndian LawBrud.gifIndian ActsBrud.gifEmployee's State Insurance Act, 1948


  • The Royal Commission of Labour appointed by the British Government has recommended that:
    • Workers should be helped at their pitiable and helpless condition for sickness, maternity and disablement
    • Sickness benefits should be provided in two modes: Medical benefits and financial benefits
    • The State should provide a system for control
    • Amounts are to be mutually arranged by contributions of both employers and employees
    • Contributions are premiums of insurance
    • Provident fund etc. should be made available for employees who retire or die
  • The Bombay Textile Labour Enquiry Committee, 1940 recommended the introduction of sickness insurance as recommended by the Royal Commission of Labour and stressed for a legislation for the same


  • The Act has 100 Sections and 3 Schedules
  • Employees State Insurance Rules, 1950 deals with the procedural implementations of this Act
  • Preamble: Act to provide certain benefits to employees in case of sickness, maternity and employment injury and to make provisions for certain other matters in relation thereto
  • Contributory Principal: Employers: 4% and Employees: 1.5%
  • Applicable to all factories, including Government factories, run with power and having 20 or more employees.
  • Excludes Mines under the Mines Act and Railway running sheds
  • Section 2(8): Defines 'Employment Injury'
    • 'arising out of and in the course of employment'
    • Could be because of an accident or an occupational disease
    • Within or outside the territorial limits of India
    • Personal Injury (is wider than bodily injury)
    • Does not include members of the Indian Military, Navy and Air Force
  • Section 2(13): Defines 'Immediate Employer'
  • Section 3: Establishment of the Employees State Insurance Corporation

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