Introduction
The Employees' State Insurance Corporation (ESIC) is a government organisation that manages the Employees' State Insurance (ESI) scheme. This scheme provides medical and financial assistance to employees and their families during sickness, employment injury, maternity, or disability.
What is Employees' State Insurance (ESI)?
Employees' State Insurance (ESI) is a social security scheme governed by the Employees' State Insurance Act of 1948. It ensures protection for employees in case of:
- Sickness & Medical Expenses – Medical treatment for insured employees & dependents.
- Maternity Benefits – Financial aid for women during pregnancy.
- Employment Injury & Disability Benefits – Compensation for work-related injuries.
- Death Benefits – Support to dependents in case of an employee's death due to work-related injuries.
- Unemployment Benefits – Assistance for employees who lose jobs due to injury or disability.
Key Features of ESI:
- Self-financing scheme – Contributions made by both employees & employers.
- Cash & medical benefits are provided to insured workers.
- Managed by the ESIC under the Ministry of Labour & Employment, Government of India.
Where is ESI Applicable?
ESI is mandatory for businesses with 10 or more employees in most states and 20 or more employees in some states.
Applicable to:
- Factories & manufacturing units
- Shops & commercial establishments
- Hotels & restaurants (not engaged in manufacturing)
- Cinemas & entertainment businesses
- Private medical & educational institutions
- Road transport & newspaper establishments
State-wise Applicability:
- Minimum 20 employees: Maharashtra, Goa, Meghalaya, Assam, Mizoram, Nagaland, Chandigarh.
- Minimum 10 employees: Delhi, Karnataka, Haryana, Rajasthan, West Bengal, Andhra Pradesh, Tripura.
Key Takeaways
- ESIC Extends Coverage – More sectors, including gig workers, may be included.
- Wage Ceiling Revisions – Potential increase in salary eligibility limits.
- Digitalization of ESI Services – Online registration & claim processing for ease of access.
