ESI scheme is a cover for workers which protects them with medical care for the insured. Additionally their dependents are covered as well. Finally ESI offers a variety of cash benefits during loss of wages or disablement. Also, the scheme offers pension known as dependent benefit to the family members of the insured person in case of death or injury due to occupational hazards while at work. Note that ESI is one of the key payroll compliances along with Provident Fund (PF), Professional Tax (PT) and TDS.
The Employees’ State Insurance Act, 1948 or popularly known as the ESI Act was notified by the Parliament and it was the first major legislation on the Social Security for workers post-independence of the country.
The ESI Act 1948 provides medical cover and other essential benefits to workers and employees who are working in factories, business establishments and organizations such as:
The ESI scheme offers benefits to both the workers and their dependents in case of any unfortunate eventualities at work. Under the ESI Act, employees or workers employed at the
are entitled for this social security scheme. The ESI Act aims at respecting human dignity during crises by protecting them from destitution, deprivation and social degradation.
The ESI benefits include medical, cash, maternity, disability and dependent benefits to the Insured Persons under the ESI Act. The contributions made by the employee and the employer fund these ESI benefits.
The scheme provides full medical care to the employee registered under the ESI Act, 1948 during the period of his incapacity, restoration of his health and working capacity. It provides financial assistance to compensate for the loss of wages during the period of his abstention from work due to sickness, maternity and employment injury and during the hospitalization in any ESI hospital. The scheme provides medical care to the employee family members also.
Earlier in February 2019, the income limit for availing the medical benefit for the dependent parents of an Insured Person covered under ESI Scheme has been enhanced from the existing Rs.5000 per month from all sources to Rs.9000 per month.
Employees whose monthly wages are Rs 21,000 or below are covered under the ESI Act. The wage limit for coverage under the Act had been increased from Rs 15,000 per month to Rs 21,000 in December 2016. An employer is liable to pay its own contribution for every employee and deduct the employee’s contribution from wages bill and pay these contributions to the ESI within 15 days of the last day of the calendar month in which the contributions are due.
Proprietorship Company.
Partnership Company.
Private Limited Company.
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