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Risk Mitigation
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 employee’s 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 employee’s 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 ...