Employee State Insurance

Employee State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. The scheme is administered by the Employees' State Insurance Corporation (ESIC) which is a statutory body set up under the Ministry of Labour and Employment of the Government of India.

Here are some key characteristics of the Employee State Insurance scheme:

• Coverage: The ESI scheme covers workers who earn up to a certain threshold and work in certain types of employment, including factories, shops, hotels, and other establishments. The scheme covers both employees and employers, and the contributions are made as a percentage of the employee's salary.
• Benefits: The ESI scheme provides a range of benefits to employees, including medical benefits, maternity benefits, disability benefits, and dependent benefits. The scheme also provides cash benefits to employees during periods of sickness, temporary or permanent disablement, and for funeral expenses.
• Contribution: The ESI scheme is financed through contributions from employees and employers, with the contribution rate being shared equally between the two. The contribution rate for employees is 1.75% of their salary, while the employer contribution rate is 4.75% of the employee's salary.
• Registration: Employers are required to register their employees under the ESI scheme within 15 days of the employee joining the organization. Once registered, employees are issued an ESI card, which they can use to access medical facilities and other benefits provided by the scheme.
• Administration: The ESI scheme is administered by the Employees' State Insurance Corporation, which is responsible for collecting contributions, managing the scheme's funds, and providing benefits to eligible employees. The corporation also maintains a network of hospitals and medical facilities across the country, which are used to provide medical benefits to employees.

Overall, the Employee State Insurance scheme is an important social security and health insurance program for Indian workers, providing them with a range of benefits and protections. The scheme is funded through contributions from both employees and employers, and is administered by a statutory body set up by the Government of India.