What is Employees’ State Insurance (ESI) scheme?

What is Employees’ State Insurance (ESI) scheme?

Employees’ State Insurance Scheme of India is a multi-dimensional Social Security Scheme tailored to provide Socio-economic protection to the 'employees' in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.

Employees State Insurance Act, 1948

The ESI Act 1948 provides medical cover and other essential benefits to workers and employees who are working in factories, business establishments and organizations such as shops, hotels or restaurant not having any manufacturing activity, but only engaged in sales, cinemas, Road motor transport, newspaper, educational or medical institutions, shops wherein 10 or more persons are employed.

The ESI scheme offers benefits to both the workers and their dependents in case of any unfortunate eventualities at work. Under the ESI Act, employees or workers employed at the above-mentioned categories and earning wages up to Rs.21,000 per month are entitled for this social security scheme. The ESI Act aims at respecting human dignity during crises by protecting them from destitution, deprivation and social degradation.