Employee State Insurance Corporation (ESIC)

Meaning & Definition

Employee State Insurance Corporation (ESIC)

The Employee State Insurance Corporation (ESIC) is an official organization in India that provides healthcare and social security benefits to employees and their families. It provides employees with access to healthcare, maternity assistance, disability benefits, and other perks. The primary goal of ESIC is to protect the well-being and financial security of organized sector employees in India.

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Frequently Asked Questions (FAQ's)

  1. Is ESIC a government or private?

    In India, the State Insurance Corporation (ESIC) is a government agency. It is a legally mandated organization established by the Indian government to oversee and manage the ESI (Employees' State Insurance) Scheme, which offers health and social security insurance to qualified workers and their dependents.

  2. What is the minimum salary for ESIC?

    The minimum monthly salary for coverage under the Employees' State Insurance Corporation (ESIC) is Rs. 21,000 per month (Rs.25,000 for employees with disability).

  3. Who is eligible for ESIC card?

    Employees earning a gross monthly salary of up to Rs. 21,000 and working in certain categories of establishments are eligible for an ESIC card. Eligible categories include employees in factories, establishments, mines, and specific hazardous industries, among others. The scheme covers both permanent and temporary employees meeting the eligibility criteria.

  4. What are the 5 benefits of ESIC?

    • ESIC provides comprehensive medical services, including hospitalization, maternity care, and outpatient treatment, ensuring quality healthcare for employees and their dependents.
    • It offers financial support during periods of temporary disablement due to sickness.
    • Female employees are entitled to maternity benefits, including paid leave and medical expenses.
    • In case of permanent disablement due to an employment injury, ESIC provides a disability pension.
    • In the unfortunate event of an employee's demise due to employment injury, ESIC provides dependents' benefits to the family, offering financial support to the surviving members.

  5. Can ESI be withdrawn?

    No, the contributions made to the Employees' State Insurance (ESI) scheme cannot be withdrawn by the employees. Unlike some other provident fund schemes, ESI contributions are intended to provide ongoing health and social security benefits rather than a lump sum withdrawal.

  6. What is the difference between insurance and ESIC?

    Insurance is a broader concept providing financial protection against specified risks, while the Employees' State Insurance Corporation (ESIC) is a government scheme in India offering social security benefits. This is particularly for health and medical care given to eligible employees and their dependents during employment-related contingencies such as sickness, maternity, and disablement.

  7. Is ESI part of salary?

    Yes, the contribution to the Employees' State Insurance (ESI) is part of an employee's salary. Both the employee and the employer contribute a percentage of the employee's gross salary towards ESI.

  8. Is ESIC compulsory?

    Yes, ESIC is compulsory for eligible employees in India. It is a mandatory social security scheme requiring both employers and employees to contribute a percentage of their salary towards healthcare benefits.

  9. How do I claim ESIC benefits?

    To claim ESIC benefits, report the illness or injury to your employer immediately. Submit the necessary documents, such as medical certificates and identity proof, to the ESIC branch office. The employer assists in filing the claim, and benefits are disbursed accordingly.

  10. What is ESI calculator?

    An ESI calculator is a tool that helps estimate the ESI contribution payable by both employees and employers based on the prescribed percentage of the employee's gross salary. It assists in determining the specific ESI contribution amounts for accurate financial planning and compliance.

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