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Section 26 – Employees State Insurance Act, 1948

Employees State Insurance Act, 1948





(1) All contributions paid under this act and all other moneys received on behalf of the Corporation shall be paid into a fund called the Employees’ State Insurance Fund which shall be held and administered by the Corporation for the purposes of this Act.


(2) The Corporation may accept grants, donations and gifts from the Central or any State Government,1 local authority, or any individual or body whether incorporated or not, for all or any of the purposes of this Act.


2(3) Subject to the other provisions contained in this Act and to any rules or regulations made in this behalf, all moneys accruing or payable to the said Fund shall be paid into the Reserve Bank of India or such other bank as may be approved by the Central Government to the credit of an account styled the Account of the Employees’ State Insurance Fund.


(4) Such account shall be operated on by such officer as may be authorised by the Standing Committee with the approval of the Corporation.



(i) This section requires a common fund to be established for the benefit of all the employees; Employees’ State Insurance Corporation v. Hotel Kalpaka Interna­tional, 1993 LLR 117 (SC).


(ii) The contributions go into a fund under section 26 for disbursal of benefits in case of accident, disablement, sickness, maternity etc. The contribution required to be made is not paid back even if employee does not avail any benefit; Bharagath Engine-ering v. Ranganayaki, (2003) 2 SCC 138.



1. The words “Part B State,” omitted by Act 53 of 1951, sec. 10 (w.e.f. 6-10-1951).


2. Subs. by Act 53 of 1951, sec. 10, for sub-section (3) (w.e.f. 6-10-1951).


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Employees’ State Insurance Act, 1948


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