What is difference between the ESI Act 1948 and the Employees Compensation Act 1923?

Distinction between ESI Act, 1948 and Employees Compensation Act, 1923

ESI Act, 1948
  1. Objectives of the Act : To provide benefits to the employees in case of sickness, maternity and employment injury caused by accident or occupational disease.
  2. Act Covers : Employment injury or death caused by accident or occupational disease, sickness and maternity.
  3. Wage limit under the Act at present : Rs. 15,000 p.m.
  4. Nature of Scheme Offered : Contributory wherein both the employer and the employee contribute 4.75% and 1.75% of wages, respectively.
  5. Benefits covered under the Act : Covers six benefits sickness benefit, medical benefit, maternity, benefit, disablement benefit, death benefit and other benefits.
  6. Who is responsible for making payment : ESIC.
  7. How is compensation paid ? : Compensation is paid periodically.
  8. Rehabilitation and re-employment : Provision for rehabilitation and re-employment of insured persons who have been disabled.
  9. Nature of claim process : Easy and convenient.
  10. Act administered through : ESI Corporation, Standing. Committee, Medical Benefit Council and Court.

Employees Compensation Act, 1923

  1. Objectives of the Act : To provide compensation to workmen for injury caused by accident or occupational disease.
  2. Act Covers : Employment injury or death caused by accident or occupational disease.
  3. Wage limit under the Act at present : No wage limit.
  4. Nature of Scheme Offered :  Non contributory and the employer has to pay the entire compensation.
  5. Benefits covered under the Act : Covers disablement benefit and dependent’s benefit only.
  6. Who is responsible for making payment : Employer.
  7. How is compensation paid ? : Compensation is paid as one time lump sum payment in cash
  8. Rehabilitation and re-employment : No such provision under the Act.
  9. Nature of claim process : Complex and time consuming.
  10. Act administered through : Commissioners.

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