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Workmen Compensation vs ESI

Digital PurplePond
Digital PurplePond

Workmen Compensation vs ESI, this presentation may help management people to look for WC than ESI for their employees. Since the compensation amount is higher than the ESI benefits given.

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Objective ESI To cover employee accidents arising out of and in course of employment, hospitalization and funeral expenses and family health care for card holders etc.. Workmen Compensation To cover statutory liability of an employer for the death of or bodily injuries or occupational diseases sustained by the workmen arising out of and in course of employment. ESI vs WCRisk Mitigation
ESI WC vs ESIRisk Mitigation Advantages Employee and the family members are benefited with medical care and hospitalization, including maternity and funeral expenses are covered
Workmen Compensation WC vs ESIRisk Mitigation Advantages The Dependents of the employee will be awarded by the commissioner in case of any death in employment. Even if the employees last drawn salary is 4,500, commissioner will consider the same as 8,000 and award the compensation accordingly.
Benefits ESI In case of death of the employee, 90% of the monthly wage is distributed among all the dependents. (Spouse till remarriage or death, children up to 18 years,parents till death) Workmen Compensation In case of death of the employee, compensation is awarded by the court not only taking into consideration the salary, but also age of the employee, # of dependents; usually the amount awarded by the court is much higher. ESI vs WCRisk Mitigation
Premium ESI Employee has to contribute 1.75% of their salary as premium and employer as 4.75% as premium on monthly basis throughout the employment period Workmen Compensation Only the employer contributes premium for the period of contract ESI vs WCRisk Mitigation
Mr.Dingle has 30 employees who have been covered under ESI ESI Supervisor Labour Period of Project Total Employees Total Premium Paid Premium Paid by Mr. Jingle ESI Premium WC vs ESIRisk Mitigation Details 7 23 3 Months 30 74,002 54,078
ESI Compensation WC vs ESIRisk Mitigation One of the employee (labour) dies, in the course of employment Drawing salary of 4,500 per month Age 35 yrs old Has 3 dependents (Wife,son,daughter aged 32,10,8 respectively) ESI Board awards his dependents based on the last drawn salary, which is 4,500 per month
Last Drawn Salary Pension Sanctioned To Spouse Son Daughter ESI Compensation WC vs ESIRisk Mitigation 4,500 4,050 2,025 1,012 1,012 In such cases, 90% of the salary is distributed as pension fund to the dependents as below Till remarriage or death Till employment or 25 yrs Till marriage
Ms.Jingle has 30 employees who have been covered under WC WC Supervisor Labour Period of Project Total Employees Premium Paid WC Premium WC vs ESIRisk Mitigation Details 7 23 3 Months 30 11,864
Workmen Compensation WC vs ESIRisk Mitigation One of the employee (labour) dies, in the course of employment Drawing salary of 4,500 per month Age 35 yrs old Has 3 dependents (Wife,son,daughter aged 32,10,8 respectively) WC Commissioner awards a lump sum money to the dependents calculated as,
Workmen Compensation WC vs ESIRisk Mitigation WC Calculation Age Last Drawn Salary Salary considered Dependents Compensation Details 35 4,500 8,000 3 9,45,888 Investing 9,45,888 on a bank fixed deposit at 8.5% p.a.would give 6,897 per month (against 4,050 by ESI)
ESI premium is paid till the employment of employee ESI board calculates and declares a pension fund for the dependents on a monthly basis WC vs ESIRisk Mitigation In unfortunate event of death of an employee,the dependent will have no medical benefits Challenges with ESI Challenges with WC No medical benefits at any stage No Funeral Benefit available
Highly Recommended For WC vs ESIRisk Mitigation Workmen Compensation for following sectors Electrical Contractors Construction Industry Ship & Harbour labour Hazard cleaning services Painting & Banner Industry Chemical Industry Erection & Installation Pandhal Contractors Packers & Movers Explosive (Crackers) Manufacturing Unit And Many more
+91 44 4265 3003 contact@purplepond.in www.purplepond.in PurplePond Investment Advisory (P) Ltd, Suite: 603, 6th Floor, Challamall, # 11/11A, Sir Theyagaraya Road, T.Nagar, Chennai - 600017 Thank You ...

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Workmen Compensation vs ESI

  • 2. Objective ESI To cover employee accidents arising out of and in course of employment, hospitalization and funeral expenses and family health care for card holders etc.. Workmen Compensation To cover statutory liability of an employer for the death of or bodily injuries or occupational diseases sustained by the workmen arising out of and in course of employment. ESI vs WCRisk Mitigation
  • 3. ESI WC vs ESIRisk Mitigation Advantages Employee and the family members are benefited with medical care and hospitalization, including maternity and funeral expenses are covered
  • 4. Workmen Compensation WC vs ESIRisk Mitigation Advantages The Dependents of the employee will be awarded by the commissioner in case of any death in employment. Even if the employees last drawn salary is 4,500, commissioner will consider the same as 8,000 and award the compensation accordingly.
  • 5. Benefits ESI In case of death of the employee, 90% of the monthly wage is distributed among all the dependents. (Spouse till remarriage or death, children up to 18 years,parents till death) Workmen Compensation In case of death of the employee, compensation is awarded by the court not only taking into consideration the salary, but also age of the employee, # of dependents; usually the amount awarded by the court is much higher. ESI vs WCRisk Mitigation
  • 6. Premium ESI Employee has to contribute 1.75% of their salary as premium and employer as 4.75% as premium on monthly basis throughout the employment period Workmen Compensation Only the employer contributes premium for the period of contract ESI vs WCRisk Mitigation
  • 7. Mr.Dingle has 30 employees who have been covered under ESI ESI Supervisor Labour Period of Project Total Employees Total Premium Paid Premium Paid by Mr. Jingle ESI Premium WC vs ESIRisk Mitigation Details 7 23 3 Months 30 74,002 54,078
  • 8. ESI Compensation WC vs ESIRisk Mitigation One of the employee (labour) dies, in the course of employment Drawing salary of 4,500 per month Age 35 yrs old Has 3 dependents (Wife,son,daughter aged 32,10,8 respectively) ESI Board awards his dependents based on the last drawn salary, which is 4,500 per month
  • 9. Last Drawn Salary Pension Sanctioned To Spouse Son Daughter ESI Compensation WC vs ESIRisk Mitigation 4,500 4,050 2,025 1,012 1,012 In such cases, 90% of the salary is distributed as pension fund to the dependents as below Till remarriage or death Till employment or 25 yrs Till marriage
  • 10. Ms.Jingle has 30 employees who have been covered under WC WC Supervisor Labour Period of Project Total Employees Premium Paid WC Premium WC vs ESIRisk Mitigation Details 7 23 3 Months 30 11,864
  • 11. Workmen Compensation WC vs ESIRisk Mitigation One of the employee (labour) dies, in the course of employment Drawing salary of 4,500 per month Age 35 yrs old Has 3 dependents (Wife,son,daughter aged 32,10,8 respectively) WC Commissioner awards a lump sum money to the dependents calculated as,
  • 12. Workmen Compensation WC vs ESIRisk Mitigation WC Calculation Age Last Drawn Salary Salary considered Dependents Compensation Details 35 4,500 8,000 3 9,45,888 Investing 9,45,888 on a bank fixed deposit at 8.5% p.a.would give 6,897 per month (against 4,050 by ESI)
  • 13. ESI premium is paid till the employment of employee ESI board calculates and declares a pension fund for the dependents on a monthly basis WC vs ESIRisk Mitigation In unfortunate event of death of an employee,the dependent will have no medical benefits Challenges with ESI Challenges with WC No medical benefits at any stage No Funeral Benefit available
  • 14. Highly Recommended For WC vs ESIRisk Mitigation Workmen Compensation for following sectors Electrical Contractors Construction Industry Ship & Harbour labour Hazard cleaning services Painting & Banner Industry Chemical Industry Erection & Installation Pandhal Contractors Packers & Movers Explosive (Crackers) Manufacturing Unit And Many more
  • 15. +91 44 4265 3003 contact@purplepond.in www.purplepond.in PurplePond Investment Advisory (P) Ltd, Suite: 603, 6th Floor, Challamall, # 11/11A, Sir Theyagaraya Road, T.Nagar, Chennai - 600017 Thank You ...