Directorate of distance education master of business administration

Employee’s State Insurance Act, 1948 
 
The main object of this Act is to provide social insurance for 
workers. It is a contributory and compulsory health insurance scheme 
that provides medical facilities and unemployment insurance to industrial 
workers for the period of their illness. 
The Act covers all workers (whether manual, supervisory or 
salaried employees) whose income does not exceed Rs. 7500 per month 
and are employed in factories, other than seasonal factories which are 
run with power and employ 20 or more workers. The State Government 
can extend the coverage of the Act with the approval of the Central 
Government. 
The Act is administered by the Employees State Insurance 
Corporation (ESI), an autonomous body with representatives of the 
Central, State Government, employers, employees, medical profession 
and the parliament. 

---

76