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Reliefs/advantages for employers

  • Employers are absolved of all their liabilities of providing medical facilities to employees and their dependants in kind or in the form of fixed cash allowance, reimbursement of actual expenses, lump sum grant or opting for any other medical insurance policy of limited scope unless it is a contractual obligation of the employer.
  • Employers are exempted from the applicability of the 
    Maternity benefit Act, Workmens' Compensation Act in respect of employees covered under the ESI Scheme
  • Employers have at their disposal, a productive, well secured workforce,; an essential ingredient for better productivity.
  • Employers are absolved of any responsibility in times of physical distress of workers such as sickness, employment injury or physical disablement resulting in loss of wages as the responsibility of paying cash benefits shifts to the Corporation in respect of insured employees.
  • Any sum paid by way of contribution under the ESI Act is deducted in computing 'Income' under the Income Tax Act.

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