A brief introduction to ESI

A brief introduction to ESI

Employees' State Insurance 

  • Employees' State Insurance (ESI) is a Social Security and Health Insurance scheme from GOI.  

  • The fund is managed by the Employees' State Insurance Corporation (ESIC). 

  • The ESI scheme is applicable to all factories and companies with 10 or more employees. 

  • An employee, whose monthly fixed salary is less than or equal to INR 21,000/- (INR 25,000/- for disabled employee) is covered under this scheme as it is mandatory.   

  • The employer contributes 3.25% and the employee contributes 0.75%, with a monthly total contribution at the rate of 4%.  

  • The employees registered under the scheme are entitled to: 

  • Medical treatment for themselves and their dependents. 

  • Unemployment cash benefit in certain contingencies.  

  • Maternity benefit in case of women employees. 

  • Disablement benefit and a family pension. 

  • Outpatient & inpatient medical facilities. 

  • Funeral expenses on death of the member. 

  • Medical care is also provided to retired and permanently disabled insured persons and their spouses on payment of a token annual premium.