ESI is an integrated social security scheme which provides Social Protection to workers and their dependents, in the organised sector, in contingencies, such as Sickness, Maternity and Death or Disablement due to an employment injury or Occupational hazard. The scheme provides guarantees reasonably good medical care to workers and their immediate dependants. It is self-financing social security and health insurance scheme for Indian workers.
The main object of ESI is to protect the employees in the organisation against the events of sickness, maternity, disablement, and death due to employment injury and to provide medical care to the insured employees and their family.
The ESI Registration is applied on those employers having 10 or more employee. For all employees earning Rs.15,000 or less per month as wages, the employer must contribute 4.75% and employee must contribute 1.75% towards ESI.
- There are Medical Benefits. The ESIC scheme provides full medical care that comprises of medical attendance by competent physicians and nurses, treatment, drugs and injections, specialist consultation and hospitalization to insured persons including their dependants. There is no ceiling on expenditure on the treatment of an Insured Person or his family member.
- There are Sickness Benefits. Sickness Benefit represents periodical cash payments made to an insured person during the period of illness or sickness certified by a medical practitioner occurring in a benefit period. An insured person requiring medical treatment and attendance with abstention from work on medical grounds are additional features incorporated under Sickness Benefit.
- There are Maternity Benefits. Maternity Benefit for confinement/pregnancy is payable for three months, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding year.
- There are Disablement Benefits. There are two types of disablement benefits (a) Temporary disablement benefit: From day one of entering insurable employment & irrespective of having paid any contribution in case of employment injury. Temporary Disablement Benefit at the rate of 90% of wage is payable so long as disability continues; and (b) Permanent disablement benefit: The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board.