ESI employee state insurance: Know everything

The Employees' State Insurance Corporation (ESIC) is a government agency in charge of administering the Employees' State Insurance (ESI) program. Employees and their families are primarily served by the system, which provides medical and financial help. When an employee is unable to perform his or her duties due to illness, injury on the job, or maternity leave, assistance is offered.

What is ESI?

Employees' State Insurance (ESI) is a social security program administered by the Indian government under the Employees' State Insurance Act of 1948. Employees are covered under the plan if they become disabled or die as a result of work-related injuries, illnesses, or maternity leave. Employees must enroll in the plan in order to receive medical treatment and other benefits. The financial aid provided by the scheme may be used to compensate employees for lost wages due to illness.

Where is it Applicable?

ESI applies to any entity with ten or more employees, such as non-manufacturing stores, hotels, and restaurants, cinemas, road motor vehicle establishments, newspaper outlets, and private educational and medical institutes.

Consider the following:

When an insured move from one company to another, the new employer must be informed of the ESI Registration Number. As a result, he will be eligible to use the same advantages if and when they are needed.

  • A lost card must be reported immediately to the Branch Office or Dispensary by the insured and dependent family members who are covered under the scheme.
  • Referral procedures should adhere to the letter.
  • If an employee plans to relocate for work, he or she must have Form 105 approved by their current employer in order to continue to be eligible for ESI benefits in another location.
  • The insured must strictly adhere to the drugs and treatments advised by the doctor.
  • Employees' State Insurance Scheme Provides Benefits (ESIS)
The following benefits are provided by ESIS:
Medical Advantages

From the first day of insurable employment, ESIS provides comprehensive medical care to the insured and their dependant family members. In a nutshell, ESIS assists you by taking care of your medical requirements. Medical coverage is available in the form of cash during certain illnesses, as stated in the Employees State Insurance Scheme document. This benefit covers up to 70% of the employee's wages for a period of up to 91 days. To be eligible for this benefit, the covered worker must contribute for 78 days during a 6-month period.

Sickness Compensation

ESIS provides a cash benefit of up to 70% of wages during the medical absence. This benefit is available for a period of up to 91 days.

Maternity Benefit

up to a span of 26 weeks, which is extendable by one month on medical advice, at the rate of full wage subject to contribution for 70 days in the preceding Two Contribution Periods ranges to 100% of employees' average daily wages in cash. Employees' miscarriages or medical terminations of pregnancy for up to 6 weeks are also covered by this benefit.

Dependents' Benefit

Your dependents do not have to be concerned about a financial problem arising from your unexpected loss of income if you experience any health dangers or injuries at work.ESIS allows you to pay your dependents in monthly installments.

Benefit for Unemployment

If you become unemployed after being insured for three years or more due to factory/establishment closure, retrenchment, or permanent invalidity, ESIS will provide you a monthly payment equal to 50% of your earnings in cash for a maximum of two years.

Benefit for Disablement

If you are temporarily disabled, ESIS will pay you 90 percent of your earnings each month until your injury heals. ESIS provides monthly payments at a rate of 90% of wage for the rest of your life if you are permanently disabled (whole life).


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