From eligibility to benefits, here’s everything you need to know

A multi-faceted social security scheme called Employees’ State Insurance Scheme of India (ESIC) was established to provide socio-economic security to employees in the organized sector. The Employee’s State Insurance Corporation is the statutory body that oversees the ESI scheme.

The main objective of the Indian government’s ESI program is to protect employees against certain health-related contingencies, such as permanent or temporary incapacity, sickness or death due to illness or injury at work, which reduces the employee’s ability to earn a living or results in loss of income. This initiative helps employees reduce the financial pressure caused by such sad circumstances.

Workers are protected by the ESI scheme, which provides medical treatment for the insured and their dependents as well as a range of monetary benefits in the event of loss of income or disability. Moreover, in the event that a insured person dies or is injured on the job due to occupational hazards, the scheme pays benefits to dependents, often called pensions.

Who is eligible for the ESI scheme?

Daily workers in manufacturing, transportation, and construction are eligible for the program, and some states have also expanded it to include employees of retail, hospitality, and hospitality businesses. publishing, as well as those working in private and medical institutions. Employers of non-seasonal businesses with 10 (20 in some states) or more employees are responsible for enrolling workers in the ESIC plan.

Currently, the ESIC scheme does not cover workers or employees earning more than Rs. 21,000 per month, and for the disabled, the maximum monthly salary is Rs. 25,000.

How is the contribution under the ESI system made?

Employees are required to contribute 0.75% of their monthly salary, while employers must contribute 3.25% of the employee’s salary. Within a per capita limit of Rs. 1,500 per insured per year, state governments contribute 1/8th of the cost of medical cover.

Employers must deposit their contributions with the company within 15 days of the end of the calendar month. The ESIC portal accepts online payments for these deposits. The State Bank of India and a few other public sector banks have been authorized by the company to accept the money.

What are the advantages of the ESI device?

The plan covers the insured’s medical expenses through economical and reasonable health care services. Coverage begins on the individual’s first day of employment. This applies to policyholders and their dependents.

For the duration of the maternity period, the beneficiary is eligible to receive 100% of their daily salary for up to 26 weeks, with the possibility of an additional month depending on a doctor’s recommendation. The benefit lasts six weeks in the event of miscarriage and twelve in the event of adoption.

If a worker is temporarily disabled, he is entitled to a monthly income of 90% during his convalescence. 90 percent of the monthly salary can be accessed for the rest of his life in the event of permanent incapacity.

Beneficiaries do not have to worry about changing jobs because the status of the insured is not affected by a change of job and their insurance number remains the same. Thus, the member can still contribute to the health insurance scheme depending on whether or not the new employer has registered with the ESIC.