Description

Employees' State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers.Basically ESI is a multidimensional social security system  to provide socio-economic protection to worker population and their dependants covered under the scheme. It is  full medical care for self and dependents.ESI  fund is managed by the Employees' State Insurance Corporation (ESIC), which is an autonomous corporation comes under Ministry of Labour and Employment, Government of India(GOI).

ESI is just like a social insurance scheme that would protect the interest of workers in possibilities such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependents.

The ESI Corporation has been at the lead in providing integrated healthcare and social security to India’s workers and their families under ESI Scheme. ESIC has been pro-active in aligning its social security agenda with the challenges of rapid globalization.The act was initially intended for factory workers but later became applicable to all establishments having 10 or more workers.

Benefits of ESI:

 1. In terms of Medical benefit:- Full medical care is provided to an Insured person and his family members from the day he enters insurable employment. Medical care is also provided to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs.120/- .

2. In terms of Sickness Benefit: Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year.

3.In terms of Maternity Benefit : Maternity Benefit for confinement/pregnancy is payable for Twenty Six (26) weeks, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding Two Contribution Periods.

4. In terms of Temporary disablement benefit: From day one of entering insurable employment & irrespective of having paid any contribution in case of employment injury. Temporary Disablement Benefit at the rate of 90% of wage is payable so long as disability continues.

5. In terms of Permanent disablement benefit: The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board.

6.In terms of Funeral Expenses : An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment.

7. In terms of Un-Employment allowance: ESIC Provides monthly cash allowance for a duration of maximum 24 months in case of involuntary loss of employment or permanent invalidity due to non-employment injury.Loss of job doesn't mean  Loss of income.

Who are required to obtain ESI Registration?

1.Factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.

2.Shops, hotels, restaurants, cinemas including preview theater, road motor transport undertakings and newspaper establishment employing 10/20 or more persons.

3. Private Medical and Educational Institutions employing 10/20 or more persons in certain States.