The Employees’ State Insurance (ESI) scheme is a social security scheme that provides healthcare and financial support to employees in case of illness, injury, or disability. The ESI scheme is administered by the Employees’ State Insurance Corporation (ESIC), which is a statutory body under the Ministry of Labor and Employment in India.
To be eligible for the ESI scheme, an employee must be earning less than INR 21,000 per month and be working in a factory, establishment, or business that employs 10 or more people. Self-employed individuals and casual workers are not eligible for the ESI scheme.
Benefits of the ESI scheme include
- Medical treatment: Employees and their dependents are entitled to free medical treatment at ESI hospitals and dispensaries.
- Sickness benefit: Employees who are unable to work due to illness or injury are entitled to receive a daily allowance to cover their lost wages.
- Disability benefit: Employees who are permanently disabled due to an accident or illness are entitled to receive a monthly pension to cover their lost wages.
- Maternity benefit: Female employees who are pregnant are entitled to receive a daily allowance for a period of up to 12 weeks before and after childbirth.
- Funeral expenses: The ESI scheme provides financial assistance towards the funeral expenses of an insured employee or their dependent.
- Employment injury benefit: Employees who are injured on the job are entitled to receive medical treatment and financial assistance to cover their lost wages.
To receive these benefits, employees must contribute a percentage of their salary towards the ESI scheme. Employers are also required to contribute a percentage of their employees’ salaries towards the ESI scheme.
Who is eligible for ESI scheme
To be eligible for the Employees’ State Insurance (ESI) scheme, an employee must be working in a factory or establishment that is covered by the ESI Act and must earn a salary of less than INR 21,000 per month. The employee must also be a citizen of India.
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The ESI scheme is applicable to employees in certain industries, such as manufacturing, construction, and trade. The employer is required to contribute a certain percentage of the employee’s salary towards the ESI fund, and the employee is also required to contribute a certain percentage of their salary. The employee’s contributions are deducted from their salary and deposited in the ESI fund.
If you are unsure whether you are eligible for the ESI scheme, you can contact the Employees’ State Insurance Corporation (ESIC) or visit their website for more information.
Contribution made the ESI scheme
ESI (Employee’s State Insurance) is a social security scheme that provides various benefits to employees in the organized sector in India. It is administered by the Employees’ State Insurance Corporation (ESIC), which is a statutory body set up by the Government of India.
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Under the ESI scheme, both the employer and the employee contribute towards the cost of the benefits provided by the scheme. The employer’s contribution is a fixed percentage of the employee’s wages, while the employee’s contribution is a fixed percentage of their wages. The exact percentage of contribution varies depending on the location of the workplace and the wages of the employee.
The ESI scheme provides a range of benefits to employees, including medical treatment, sickness benefit, maternity benefit, disablement benefit, and dependant’s benefit. It also provides for funeral expenses in case of the death of an insured person. The ESI scheme is available to employees earning up to a certain wage limit, which is currently set at INR 21,000 per month.
In summary, the ESI scheme is a social security scheme that provides various benefits to employees in the organized sector in India, and is funded through contributions from both the employer and the employee.