⛏🛠Employee State Insurance Corporation Scheme 🔩⛏

In a time, when the industry was still in its nascent stage, the people of India was still heavily dependent on a large assortment of imported goods and services. These goods and services were provided by either the developed or developing parts of the world. So, India being the self-dependent country it is, started developing the working class sector so ensure that manufacturing and labor jobs remained in the country.

A workforce was developing in the country, dedicated to ensure that industry in India begins to grow and thrive. To ensure that these workers were protected in terms of health and finances, the Parliament implemented the Employees’ State Insurance Act, 1948 (ESI Act). It was the first major legislation that was meant to garner social security for workers. The ESI Actencompasses health related eventualities which workers are exposed to on a daily basis. This could include any type of sickness, temporary or permanent disability, maternity, diseases contracted from a workplace, death due to employment, and any type of injury that results in the loss of wages or earning capacity. He ESIC Act acts as a financial safety net for workers against these ailments.

Who are Eligible for ESI?

To come under the vast umbrella of benefits offered by the Employee State Insurance Corporation (ESIC), an individual should meet certain criteria that has been set by the committee. The ESI scheme is applicable to

An individual who is employed in a non-seasonal factory that has more than 10 employees. This criteria applies under Section 2 (12) of the Act.With effect from 1 January 2017, the wage limit of an employee is set at Rs.21,000 per month for him/her to come under the coverage of the ESI scheme.

ESI Coverage:

This scheme has also been made extended to hotels, shops, cinemas and preview theatres, restaurants, newspaper establishments, and road-motor transport undertakings. This scheme has also been extended to the Private Educational and Medical institutions that have employed 10 or more people. This is applicable in certain states and union territories only.

The ESI scheme has been implemented are-wise throughout the country. This scheme has been implemented in stages in every state in India except Arunachal Pradesh and Manipur. The scheme has also been enacted in all union territories except for Daman and Diu, Dadra and Nagar, and Lakshadweep Islands.

The ESI scheme has been notified in a total of 325 complete districts out of a total of 393 districts. Out of these notified districts, 89 districts implemented the scheme partially.
Key Features and Benefits of ESI:

There are a number of attractive features and benefits that are offered by the Employee State Insurance Corporation. Not only does it provide medical benefits but it also comes with a level of financial security in times of financial hardship like unemployment, etc. Some of these are listed below:

Medical Benefits: The Employee State Insurance Corporation takes care of an individual's medical expenses by providing reasonable medical care. This cover comes into effect from day one of the individual's employment.Disability Benefit: In case an employee is disabled, ESIC ensures that the employee is paid their monthly wages for the period of the injury in case of a temporary disablement or for the remainder of the employee's life in case of a permanent disablement.Maternity Benefit: ESIC helps an employee welcome their baby to a household which has been showered with benefits. ESIC provides a total of 100% of the average daily wages for a period of to 26 weeks from the time of going into labor and 6 weeks in case of a miscarriage. 12 weeks of pay is provided in the case of an adoption.Sickness Benefit: ESIC ensures that there is a flow of cash coming into the employee's household during medical leave. 70% of the average daily wages of an employee is paid during medical leave for a maximum period of 91 days in two successive benefit periods.Unemployment Allowance: ESI provides a monthly cash allowance for a maximum period of 24 months in case of permanent invalidity due to a non-employment injury or due to involuntary loss of employment.Dependent's Benefit: In case the employee meets with an untimely death due to an injury at the place of employment, ESIC will provide monthly payments apportioned among the surviving dependents.

Other benefits that are offered with ESI are:

Confinement ExpensesFuneral ExpensesPhysical RehabilitationVocational TrainingSkill Upgradation Training under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY)

When is ESI registration required?

When a company employs 10 or more employees, it is mandatory for that company or any other entity to with the ESIC. An employee who earns less than Rs.21,000 per month contributes 1.75% of his/her salary towards the ESI where as the employer pays 4.75% towards the ESI making a total of 6.5%. The company or establishment can apply for an ESI registration within 15 days from the time the ESI Act becomes applicable to that company or establishment.