What is Employees' State Insurance(ESI)?
It is a social security and health insurance scheme for workers, designed to provide financial protection in case of sickness, maternity, disability, or employment injury. It is governed by the Employees' State Insurance Act, 1948 in India and is managed by the Employees' State Insurance Corporation (ESIC).
Key Features of ESI:
Eligibility:
Applicable to employees earning a gross salary of up to ₹21,000 per month (₹25,000 for persons with disabilities).
Contributions:
Both employers and employees contribute to the ESI fund:
Employer Contribution: 3.25% of the employee’s gross salary.
Employee Contribution: 0.75% of their gross salary.
Benefits:
Medical Benefits: Comprehensive healthcare for employees and their families.
Cash Benefits: For situations like sickness or maternity leave.
Disability Benefits: Compensation for temporary or permanent disability.
Dependent Benefits: Financial support to dependents in case of the employee's death due to work-related injuries.
Coverage:
The scheme covers employees working in factories, shops, and establishments with a minimum number of workers (typically 10 or more).
ESI ensures that workers and their families receive necessary medical care and financial assistance, promoting overall well-being and workplace security.