Employee State Insurance (ESI)

Meaning & Definition

Employee State Insurance (ESI)

Employee State Insurance (ESI) is an obligatory health insurance and social security initiative in which monthly contributions are made by both employees and employers, granting Indian employees access to various benefits such as medical care, maternity support, and disability assistance. ESI guarantees healthcare access and financial assistance during crisis, enhancing the welfare of eligible employees and their dependents, and is administered by the Employee State Insurance Corporation (ESIC)

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Frequently Asked Questions (FAQ's)

  1. What is employee state insurance in salary

    Employee State Insurance (ESI) is a social security and health insurance scheme in India. It's a statutory contribution made by both employers and eligible employees. A percentage of the employee's salary is contributed to the ESI fund, which provides comprehensive healthcare coverage, including medical, maternity, and disability benefits. This scheme aims to safeguard employees and their dependents against unforeseen healthcare expenses.

  2. Who is eligible for ESI scheme

    Employees earning up to Rs. 21,000 per month and working in establishments with 10 or more employees in specified industries are eligible for ESI benefits. These industries include mines and oilfields, factories, plantations, transport undertakings, and shops and establishments.

  3. In which states ESI is applicable

    The Employees' State Insurance (ESI) Act, 1948 is applicable in all 36 states and union territories of India except Lakshadweep. The scheme has been notified in 643 districts across the country. It also includes partially notified states Assam (Only Kamrup Metropolitan and Tinsukia districts) and Andaman and Nicobar Islands (Only South Andamans and Nicobar districts).

  4. What is ESI benefits

    The Employees' State Insurance (ESI) provides various benefits to covered employees in India. These include medical benefits for the employee and their family, sickness and maternity benefits, disablement benefits (temporary and permanent), and dependent benefits in case of an employee's death. The scheme also covers funeral expenses. These benefits aim to provide financial and health-related support to employees in times of need.

  5. Is ESIC compulsory for all employees

    The Employees' State Insurance (ESI) Act applies to specific establishments and categories of employees. It is mandatory for employers and employees within the prescribed criteria. Generally, establishments with ten or more employees (in certain specified industries) are required to register under ESIC. The ESI Act of 1948 mandates that all employers in these industries register with the Employees' State Insurance Corporation (ESIC) and contribute towards the ESI scheme.

  6. How can I claim my ESI amount

    To claim your ESI amount, you'll need to follow these steps:

    • Retrieve your ESIC card, medical certificates, and salary slips.
    • Obtain the relevant claim form from the ESIC website or your employer's ESIC office.
    • Submit the completed form and documents either online via the ESIC website or in person at the nearest ESIC office.
    • Track your claim's progress online or by contacting your employer's ESIC office or the regional ESIC office.

  7. What is the difference between PF and ESIC

    The Employee Provident Fund (EPF) is a retirement plan in which employers and employees contribute a portion of their salaries, as a percentage of the employee's salary, to the employee's pension fund. Conversely, ESIC is a health insurance plan that offers medical benefits to both employees and their dependents. The employer makes a partial salary contribution to the ESIC scheme.

  8. How is ESI calculated

    The employee's gross pay is the basis for calculating ESI. The employer's and employee's current contribution rates are 3.25% and 0.75%, respectively. As a result, 4% of the worker's gross pay is contributed to ESI.

  9. What is the limit of ESI

    Under the ESI Act, the current wage limit for coverage is Rs. 21,000 per month, thus employees who earn more than Rs. 21,000 per month are not eligible for ESI benefits. The wage limit is revised every year by the Central Government. The current wage limit was applicable from the beginning of January 2017.

  10. What are the ESI rules for 2023

    The Employees' State Insurance (ESI) rules for 2023 are:

    • The wage limit for ESI coverage is Rs. 21,000 per month.
    • Employers contribute 3.25% and employees contribute 0.75% of their wages to ESI.
    • ESI applies to establishments with 10 or more employees in specified industries.
    • Employers and employees must register with ESI within 15 days.
    • ESI provides sickness, maternity, disablement, and death benefits.
    • Penalties are imposed for non-registration or non-payment of contributions.

  11. Who is not eligible for ESIC

    Employees who earn more than Rs. 21,000 per month, self-employed individuals, temporary workers, casual laborers, household workers, and those working in establishments exempted by the Central Government or with less than 10 employees are not eligible for ESIC benefits.

  12. Is PF and ESI compulsory

    Yes, PF and ESI are compulsory for all employees who are employed in establishments with 10 or more employees in the following industries: mines and oilfields, factories, plantations, transport undertakings, and shops and establishments.

  13. Can I use my ESI card in other state

    Yes, you can use your ESI card in any other state in India. The ESI scheme is a nationwide program, and your ESI card is valid across the country. You can use your ESI card to access medical benefits at any ESI dispensary or hospital in India.

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