What is ESIC?

The Employee State Insurance Corporation (ESIC) is a government-run social security scheme designed to provide financial protection and medical benefits to employees in India. Established under the ESI Act, 1948, it ensures that workers and their families receive healthcare, cash benefits during sickness, maternity, disability, and support in case of employment-related injuries.

Benefits of ESIC

Medical Benefits

Employees and their dependents receive complete medical care, including hospitalization, specialist consultations, and medicines at ESI hospitals and dispensaries.

Sickness & Maternity Benefits

Employees can claim cash benefits during certified sickness and maternity leave, ensuring income stability during crucial times.

Disability & Dependents’ Benefits

In case of permanent or temporary disability due to workplace accidents, employees receive financial support. Families of deceased insured persons also receive dependents’ pensions.

Eligibility for ESIC

• Applicable to organizations with 10 or more employees (in some states, 20).

• Employees earning a monthly wage of up to ₹21,000 (₹25,000 for persons with disability) are covered.

• Employers must contribute 3.25% of wages, and employees contribute 0.75%, making it a joint responsibility.

Employer Responsibilities

Employers must register under ESIC within 15 days of the Act becoming applicable, maintain employee records, and submit regular contributions.

Employee Role

Employees should provide accurate details for registration and ensure timely updates for smooth claim processing.

Why ESIC Matters

ESIC is not just a legal mandate but a social security lifeline. It safeguards employees against financial risks due to illness or accidents, while helping employers build a reputation of care and compliance.