Sukrit is running small fabrication unit with 5 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 exte

Benefits for employers in extending the ESI facilities to 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. Employers are granted exemption pertaining to the applicability of Maternity Benefit Act, 1961, Employees 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 organization. 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 the employer to the ESIC Corporation in respect of insured employees. 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.