India Employees State Insurance

(ESI) Policy
(V 1.3)

India ESI Policy | C3 – Protected 1

 INDIA EMPLOYEE STATE INSURANCE (ESI) POLICY (V 1.3)

Prepared By Reviewed by Approved By

Hemanth Kumar
Newton MJ Satish Jeyaraman
Name Thiyagarajan
(542903) (101669)
(225944)
Date May 09, 2017 May 10, 2017 May 10, 2017
Version History

V 1.1 Annual review and process changes, if any, incorporated

Additional Definitions, Entitlements & Contribution Period details incorporated

V 1.2
Addition on the scope for Associates in Cognizant India affiliates
Change in Scope from INR 15,000 to INR 21,000
V 1.3 Amendment of Maternity Benefit from three months to twenty six weeks
Submission of Aadhaar details to avail E-Pehchan card

India ESI Policy | C3 – Protected 2

Contents
1. Overview ........................................................................................................................................................ 4

2. Scope ............................................................................................................................................................. 4

3. Definitions ..................................................................................................................................................... 4

4. Eligibility ........................................................................................................................................................ 5

5. Approvals ...................................................................................................................................................... 6

6. Procedure ...................................................................................................................................................... 6

7. Responsibility Matrix.................................................................................................................................... 7

8. Exceptions Handling .................................................................................................................................... 7

India ESI Policy | C3 – Protected 3

 EMPLOYEE STATE INSURANCE (ESI) POLICY

1. Overview
1.1 The Employee State Insurance policy (ESI) provides medical benefits to associates and their
dependents in case of sickness, maternity and injury; through the ESI Hospitals, per statutory guidelines
of the Employee State Insurance (ESI) Act 1948

1.2 This policy stands amended on January 01, 2017

2. Scope
2.1 The policy covers all full-time associates (as defined under this Policy) hired by Cognizant India and its
Indian affiliates and associates who have joined from non-Indian entity, whose monthly gross salary is
less than or equal to INR 21,000

3. Definitions
3.1 Dependents: As nominated by the associate in the nomination form

3.2 Monthly Gross Salary: Amount computed after deducting the Employer PF & ESI from the monthly
Gross Compensation (AGC/12) as defined in the offer letter

3.3 Associate: Full time employee of Cognizant India and its Indian affiliates

3.4 Affiliate: Any subsidiary of Cognizant Technology Solutions Corporation incorporated in India whether
formed organically by Cognizant or through acquisition of the common stock (share capital) of that
entity. In the case of acquisition the employee service start date for the purposes of eligibility to Gratuity
would be the date of joining the acquired entity

3.5 Joined: Hired into Cognizant Technology Solutions India Private Limited or its Indian affiliates from
external or transferred from one of those non-Indian Cognizant affiliate

3.6 Contribution Period: Periods fixed for the purpose of paying contributions under the Act

3.7 Benefit Period: Periods fixed for the purpose of deriving benefits under the Act

India ESI Policy | C3 – Protected 4

4. Eligibility
4.1 Applicability:

4.1.1 Associates and their dependents can avail medical facilities / benefits through a network
of ESI hospitals from Day 1 of joining Cognizant India and its Indian affiliates

4.1.2 Associates and their dependents can avail cash benefits from the consecutive benefit
period

4.1.3 In the case of first time entrant to ESIC, the first contribution period shall commence from
the date of employment, and the corresponding first benefit period shall commence on the
expiry of 9 months from the said date. However, to avail Medical Benefit & Disablement
Benefit no minimum contribution period required

4.1.4 The ESI policy is administered through the local Employee State Insurance Corporation
(ESIC) authorities in the Associate’s location

4.2 Contribution Rate:

4.2.1 The contribution will be made by both the associate and Cognizant India and its Indian
affiliates in the following ratio:

o The associate’s contribution will be 1.75% of their monthly gross salary

o Cognizant’s contribution will be 4.75% of the monthly gross salary

4.2.2 Associate is covered under ESI contribution basis the monthly gross salary as per Offer
letter or as per the Revision letters, in such cases,

o Associate shall not be excluded from ESI coverage if monthly gross salary is more
than Rs.15,000/- due to Shift allowance

o Associate availed Flexible Benefits Plan for Income Tax purpose, ESI would be
computed including the amount declared in Flexible Benefits Plan

4.2.3 The contribution towards this scheme will be suspended if the associate payroll is
transferred to non-India Cognizant entity (outside India)

4.3 Benefits:

4.3.1 Sickness benefit is paid in cash by ESIC by way of claim, in the event of sickness resulting
in absence from work. In order to qualify for sickness benefit the insured worker is required
to contribute for 78 days in a contribution period of 6 months

India ESI Policy | C3 – Protected 5

 4.3.2 Maternity Benefit for confinement/pregnancy is payable to the insured women associates
for twenty six weeks, which is extendable by further one month on medical advice at the
rate of full wage subject to contribution for 70 days in the preceding year

4.3.3 Disablement benefit is payable, if the associate suffers from any physical disablement
due to injury

4.3.4 In case of an associate’s death, 70 per cent of the monthly gross salary will be shared
among dependents in the ratio defined in the nomination form, filled at the time of joining

4.3.5 Cash Benefits are disbursed by the ESIC through its Local Offices LOs/ Mini Local Offices
(MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory conditions

4.3.6 Details of benefits are available in the given link : http://www.esic.nic.in/benefits.php

Note: The medical insurance policy benefits will remain unchanged, even if the associate
is insured under ESI.

5. Approvals
 Not Applicable

6. Procedure
6.1 General:

6.1.1 Associates should request for temporary identity card by raising GSD along with Aadhaar
details of the Associate and the family members

6.1.2 Associates will be issued a E-Pehchan card(Permanent Identity card)

6.1.3 Associates have to produce the card at the time of claiming medical benefits

6.1.4 A network of local offices has been established by ESIC to disburse all claims

Note: For more details on local ESI office network, visit: http://www.esic.nic.in

6.1.5 The local office will answer all queries and assist the associate in filling in the claim forms

India ESI Policy | C3 – Protected 6

 6.2 Contribution Period & Benefit Period:

6.2.1 There are two contribution periods each of six months duration and two corresponding
benefit periods also of six months duration as under.

Contribution period Corresponding Cash Benefit period

1st April to 30th September 1st January of the following year to 30th June

1st October to 31st March 1st July to 31st December of the year following

7. Responsibility Matrix
7.1 Associate: Responsible for declaring the dependents or nominees information at the time of joining
Cognizant India and its Indian affiliates or after any life event change (eg. Marriage, etc.,)

8. Exceptions Handling
8.1 The benefits of this policy are governed by the terms and conditions of employment in practice at
Cognizant India and its Indian affiliates. This is subject to change from time to time. Cognizant India
and its Indian affiliates reserve the right to amend its policies as necessitated. All statutory requirements
are applicable as mandated by law

8.2 All exceptions to this will be directed to HR India Compliance

India ESI Policy | C3 – Protected 7