Dinesh is running small handicraft unit with 3 workers. He is planning for expansion and it may require addition of 10-15 employees. He is planning to register his business under Employees State Insurance (ESI) and exten

Following are the benefits available to employer in extending the ESI facilities to his employees: Employers are absolved of all their liabilities of providing medical benefits to their employees and their family members or dependents in kind or in the form of fixed cash allowance, reimbursement or 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 granted exemption pertaining to the applicability of Maternity Benefit Act, 1961, Employee Compensation Act, 1923 etc. in respect of employees covered under the ESIC Scheme. This results in employers possessing a productive and well secured workforce, at their disposal which is an essential ingredient for better productivity of an organisation. Employers are absolved of any responsibility in times of physical distress of their employees or workers such as employment injury, sickness or physical disablement thereby resulting in loss of wages since the responsibility of paying cash benefits shifts from employer to the ESIC in respect of insured employee. Any amount or sum paid by way of contribution under the Employees' State Insurance Act, 1948 is deducted in computing "Income" under the Income Tax Act, 1961.