ESI, short for Employees’ State Insurance Corporation, is a government agency in charge of the Employees’ State Insurance (ESI) program. The initiative offers employees and their families medical and financial help. Assistance is offered when an employee cannot execute his job due to illness, workplace injury, or maternity.
What is Employees' State Insurance (ESI)?
- Sickness & Medical Expenses – Medical treatment for insured employees & dependents.
- Maternity Benefits – Financial aid for women during pregnancy.
- Employment Injury & Disability Benefits – Compensation for work-related injuries.
- Death Benefits – Support to dependents in case of an employee’s death due to work-related injuries.
- Unemployment Benefits – Assistance for employees who lose jobs due to injury or disability.
Features of ESI
- Self-financing scheme – Contributions made by both employees & employers.
- Cash & medical benefits are provided to insured workers.
- Managed by the ESIC under the Ministry of Labour & Employment, Government of India.
The Objective of Employee State Insurance
The basic goal of the Government of India in launching the ESI scheme is to protect workers from certain health-related contingencies such as permanent or temporary disablement, sickness, and death due to occupational injury or disease, which impacts the worker’s earning capacity or leads to income loss. This scheme enables employees to avoid financial hardship due to such sad events. Beneficiaries might also receive maternity benefits under the scheme.
The ESI program is a worker’s insurance policy that provides medical treatment for the insured and their families, as well as a variety of monetary benefits in the event of a wage loss or disability. In addition, the system provides a pension known as a dependent benefit to the insured person’s family members in the event of death or injury due to occupational dangers while at work.
ESI Act Full Form - Explained
The Employees’ State Insurance Act 1948, often known as the ESI Act, was notified by Parliament and was the country’s first important legislation on Social Security for workers after independence. The ESI Act of 1948 provides medical coverage and other essential advantages to workers and employees who work in factories, businesses, and organizations such as hotels, road transportation, cinemas, newspapers, educational or medical institutions, and shops that employ ten or more people.
The ESI scheme provides payments to both workers and their dependents in the event of an accident at work. Employees or workers in the above-mentioned groups who earn up to Rs. 21,000 for a month are eligible for this social security scheme under the ESI Act. The ESI Act attempts to safeguard people from starvation, deprivation, and social degradation during times of crisis.
FAQs
Who is Eligible for the Employee State Insurance?
To apply for this Employee State Insurance Scheme, you must meet the following eligibility requirements:
- He or she should work in a non-seasonal company with a workforce of more than ten people.
- A month’s salary should be Rs.21,000 for an employee.
How to Register for ESIC?
Step 1: Go to the official ESIC website and click “Sign Up.”
Step 2: Complete the form on the next screen with accurate information and submit it.
Step 3: You will then receive a confirmation email with your login and password information on your registered email ID.
Step 4: Log in to the ESIC portal with your assigned username and password and select “New Employer Registration.” Select a “Type of Unit” from the drop-down option before clicking “Submit.”
Step 5: Complete the “Employer Registration Form 1” and submit it with all needed documentation.
Step 6: You will be brought to a page titled “Payment of Advance Contribution,” where you must input the amount for the six-month advance contribution and select the payment mechanism.