Rules 21-22 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 21 fixes the funeral expense amount under ESI. Rule 22 is the working rule for cash benefits: it says how many contribution days an insured person needs and at what rate sickness, extended sickness, maternity, disablement and dependants' benefit are paid.
Funeral expenses under the proviso to s.32(1)(f) are Rs 20,000, notified by the Corporation. For sickness benefit, an insured person needs contributions payable for at least 78 days in the corresponding contribution period and receives 70% of the standard benefit rate; extended sickness benefit is 80% for up to 730 days. Maternity benefit needs 70 days in the two preceding contribution periods, is paid for 26 weeks (12 weeks in some cases) and equals the standard benefit rate. Disablement and dependants' benefit are at 90%.
Rule 21: funeral expenses
Rule 21 says the amount of funeral expenses for the purposes of the proviso to clause (f) of s.32(1) "shall be notified by the Corporation and shall be twenty thousand rupees". For the Code's provision, see our article on sections 32 and 33, and for the old-law explanation our post on funeral expenses under ESI.
Rule 22: terms you need first
Rule 2 of the Rules defines the standard benefit rate as the average daily wages obtained by dividing total wages paid in the contribution period by the days for which wages were paid. A contribution period and a benefit period are each of not more than six consecutive months as set by regulations under section 157. Rule 22 works entirely off these. Our post on contribution and benefit periods explains the concept.
Employers who need help with contributions so that employees' qualifying days are not lost can use our ESI and PF registration service.
Sickness benefit (rule 22(1))
| Condition | Rule |
|---|---|
| Qualifying days | Contributions payable for not less than 78 days in the corresponding contribution period |
| Rate | 70% of the standard benefit rate, rounded to the next higher rupee |
| New employee with a shorter contribution period (under 156 days) | Qualifies if contributions were payable for not less than half the days available for working in that period |
| Insured woman receiving maternity benefit, or person receiving temporary disablement benefit, with a shorter period | Same half-the-days test |
| Waiting days | No benefit for the first two days of sickness, except for a spell following another paid spell at an interval of not more than fifteen days |
| Ceiling | Not more than 91 days in any two consecutive benefit periods |
Extended sickness benefit (rule 22(2))
- Available if the person is diagnosed with one or more diseases specified in the Corporation's regulations.
- The person must have completed four contribution periods immediately before the spell in which the disease is first diagnosed, paid contributions for 156 days in those four periods, and be eligible for sickness benefit in at least one of them.
- It is granted only if he has exhausted ordinary sickness benefit or is ineligible under sub-rule (1).
- Maximum 730 days, including the ordinary sickness benefit, subject to regulations under section 157.
- Daily rate: 80% of the standard benefit rate.
Maternity benefit (rule 22(3))
| Point | Rule |
|---|---|
| Qualifying | Contributions payable for not less than 70 days in the immediately preceding two consecutive contribution periods |
| Duration | 26 weeks, of which not more than 8 weeks precede the expected confinement, for days she does not work for remuneration |
| Commissioning or adopting mother | 12 weeks from the date the child is handed over |
| Two or more surviving children | 12 weeks, of which not more than 6 weeks precede expected confinement |
| Miscarriage or medical termination | 6 weeks immediately following, on production of required proof |
| Sickness arising from pregnancy, confinement, premature birth, miscarriage or termination | Additional period not exceeding one month |
| Daily rate | Equal to the standard benefit rate, rounded to the next higher rupee |
| Death of the woman | Paid for the whole period to her nominee or legal representative, and if the child also dies, up to and including the day of the child's death |
Medical bonus (rule 22(4))
An insured woman, and an insured person in respect of his wife, is paid Rs 15,000 per case as medical bonus on account of confinement expenses. It applies where the confinement occurs at a place where necessary ESI medical facilities are not available, and is paid for two confinements only.
Disablement benefit (rule 22(5))
- Temporary disablement: a person qualifies for disablement not less than three days, excluding the day of accident.
- Permanent disablement, total or partial: periodical payment for that limited period, or for life where assessed finally.
- Daily rate: 90% of the standard benefit rate in the corresponding contribution period, rounded up. Where injury occurs before the first benefit period, 90% of the average daily wages in the first wage period (or of wages actually earned or that would have been earned on the day of accident if injury occurs before the first wage period ends). This is called the full rate.
- Payable at: the full rate for temporary disablement and permanent total disablement; for permanent partial disablement, a percentage of the full rate as in Part II of the Fourth Schedule (see Fourth Schedule), or proportionate to the loss of earning capacity where the injury is not listed. Multiple injuries from one accident are aggregated but not above the full rate.
Dependants' benefit (rule 22(6) and (7))
| Dependant (where there is a widow, child or widowed mother) | Share of full rate |
|---|---|
| Widow, for life until remarriage (divided equally among widows) | three-fifths |
| Each legitimate or adopted son, until age 25 (longer if infirm and wholly dependent) | two-fifths |
| Each legitimate or adopted unmarried daughter (longer if infirm and wholly dependent) | two-fifths |
| Widowed mother, for life | two-fifths |
If the total exceeds the full rate, each share is proportionately reduced. Where there is no widow, child or widowed mother, the widower (three-fifths until remarriage), other parents or grandparents (two-fifths, divided equally) and other dependants under eighteen (two-tenths of the full rate) may be paid. The daily rate of dependants' benefit is 90% of the standard benefit rate, and the minimum total monthly payment to all eligible dependants is as notified by the Corporation. Sub-rule (8) lets the Corporation review and alter scales when funds permit. See our post on dependants' benefit.
A worked example
An insured person's standard benefit rate for the contribution period is Rs 600 a day. Contributions were payable for 80 days, above the 78 needed, so sickness benefit is 70% of Rs 600, which is Rs 420 a day, for the days of sickness after the first two (subject to the 91-day ceiling). If the same person is later disabled temporarily by an employment injury lasting ten days, benefit is at the full rate of 90% of Rs 600, which is Rs 540 a day. (Illustrative.) These are Central Rules; where the State Government is the appropriate Government, the State's own rules apply.
Need help with ESI eligibility?
Qualifying days depend on contributions actually payable, so late or missed ESI filings can cost an employee a benefit. Our ESI and PF registration practice can help you keep registrations and contributions in order.
Key takeaways
- Funeral expenses: Rs 20,000, notified by the Corporation.
- Sickness benefit: 78 days, 70%, first two days excluded, 91-day ceiling.
- Extended sickness: 80%, up to 730 days, for listed diseases.
- Maternity: 70 days in two periods, 26 weeks, rate equals the standard benefit rate; medical bonus Rs 15,000.
- Disablement and dependants' benefit: 90% of the standard benefit rate.
Read next
- Rules 19 and 20: Rate of contributions and administrative expenses
- Rules 23 and 24: Medical Appeal Tribunal and second appeal
- Sickness benefit under ESI
- Disability benefit under ESI: temporary and permanent
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.