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In the realm of social security and healthcare provisions for employees in India, the Employees’ State Insurance Corporation (ESIC) stands as a stalwart institution. Established under the purview of the Employees State Insurance Act, 1948, ESIC is dedicated to ensuring the welfare and protection of workers across the nation.
ESIC is a statutory body entrusted with the task of implementing and overseeing the Employees State Insurance (ESI) scheme. This comprehensive scheme provides financial and medical benefits to employees and their dependents in times of need.
The Employees State Insurance Act, 1948, not only lays the legislative foundation for the ESIC but also plays a pivotal role in ensuring the welfare of employees. It mandates that employers provide essential medical and cash benefits to employees and their families, safeguarding them against various contingencies such as sickness, maternity, disablement, or even death due to employment-related injuries. Consequently, this act serves as a crucial protective measure for workers across the nation.
ESI provides covered employees and their dependents with a variety of benefits, including:
ESI registration becomes mandatory for establishments employing 10 or more employees (or 20 or more in certain states). Registration must be completed within 15 days from the date the Act becomes applicable to the establishment.
Both employers and employees contribute to the ESIC fund. As of now, the employee’s contribution rate is 0.75% of their wages, while the employer’s contribution rate is 3.25% of the employee’s wages, making the total contribution 4%.
The ESI Card, also known as the Pehchan Card, is issued to employees covered under the ESI scheme. It serves as a crucial identification document enabling them to avail of medical services and other benefits under the scheme.
Employees who are covered or entitled under ESI when they earn less than Rs. 21,000 per month and Rs. 25,000 in the case of a person who are disabled. Employees contributes 1.75% of their income while the employer contributes 4.75% towards the ESI plan.
Employees earning wages up to Rs. 21,000 per month are eligible for ESI coverage.
Yes, ESI is applicable pan-India, with variations in certain regulations across states.
Documents such as PAN card, address proof, employee details, and establishment documents are required for ESI registration.