Employee State Insurance Scheme (ESI)

The Employee State Insurance (ESI) scheme of India, instituted under the Employee State Insurance Act, 1948, is a comprehensive social security system designed to offer socio-economic protection to workers and their dependents. Administered by the Employees State Insurance Corporation (ESIC) under the Ministry of Labour and Employment, this scheme addresses various health-related contingencies such as sickness, disablement, maternity, occupational diseases and employment-related death, ensuring medical and financial aid to insured individuals and their families.

Eligibility

• Factories with 10+ employees (power-using) or 20 more employees (non-power using).
• Hazardous establishments with even 1 employee.
• Voluntary inclusion for smaller establishments.

Contribution

• Employee’s Contribution: 0.75% of gross earnings.
• Employer’s Contribution: 3.75% of gross earnings.

Exemption?

• Employees earning up to ?21,000/month are eligible.

• Daily wage earners up to ?176 are exempted from employee contribution.

Benefits

1. Medical Care

Primary care from day one for insured and dependents.

Specialist consultations and diagnostics.

In-patient care at ESIC hospitals or affiliated facilities.

2. Disability Benefits

Temporary: 90% of wages during the disability.

Permanent: 90% of wages, based on certified loss of earning capacity.

3. Dependent Benefits

90% of wages as monthly pension for dependents of deceased due to employment injury.

4. Maternity Benefits

26 weeks of leave at full wages, extendable by one month with medical advice.

5. Unemployment Allowance

50% of wages up to 2 years under Rajiv Gandhi Shramik Kalyan Yojana.

Includes medical care and vocational training.

5. Sickness Benefits

70% of wages for up to 91 days annually.

Extended and enhanced sickness benefits for long-term illnesses and sterilization.

7. Miscellaneous

Funeral expenses: ?15,000.

Old age medical care.

Rehabilitation allowance for permanently disabled.

Contribution and Benefits Periods