Introduction
The Employees State Insurance Corporation (ESIC) is India’s largest social security system and provides health and financial benefits to millions of people in India. Learn more about its purpose, eligibility requirements, and how it can provide peace of mind for workers and their families.
What is the Employees State Insurance Corporation (ESIC)?
The Employees State Insurance Corporation (ESIC) is a government-sponsored, self-financing social security system in India that provides health, financial and other benefits to employees and their families. It was established under the Employees’ State Insurance Act 1948 and provides cohesive social security cover and insurance protection to Indian workers employed in factories, mines, plantations and in shops or establishments with 10 or more workers. However, for some states the threshold limit for coverage of establishments is still 2020. This scheme is also applicable to non-seasonal railway passengers carrying out their business in 192 districts throughout India.
Who is Eligible for ESIC Benefits?
Workers in factories, mines, plantations and shops/establishments with 10 or more workers are eligible to receive ESIC benefits. The employees should be registered with the Employees’ State Insurance Corporation according to their wages. The employee must contribute a certain percentage of his salary to get benefits from ESIC and also enjoy the monetary state welfare scheme for medical care. In addition, family members of an insured worker can also receive coverage under this scheme.
What Kind of Benefits are Offered by the ESIC?
The Employees State Insurance Corporation offers a wide range of benefits to its employees, including medical care at ESIC sponsored hospitals, financial support in case of sickness and maternity leaves, compassionate assistance for the disabled and medically uninsured, and financial assistance during unemployment. All insured persons are entitled to receive cash benefits when they are unable to work due to injury or illness, disability or maternity. They can also be eligible for death gratuity in case of demise of an employee who was previously a part of the ESIC. Other benefits also include free medical care to the dependent family members and retirees as well as accident relief measures.
What Other Ways Can People Access Benefits Under ESIC?
Besides cash benefits, members of ESIC can access a range of other benefits through the insurance scheme. These include medical care and services, including hospital, dispensary and maternity coverage; post-accident treatments, emergency treatment in time of epidemic, crisis or disaster; and funeral expenses in case of death of members due to natural causes. ESIC also provides savings and pension schemes for subscribers, which help ensure financial stability for them in their old age. In addition to these benefits, ESIC organizes special training programs for members enrolled in the different schemes.
Section 46 of the Act provides six social security benefits, namely:-
- Medical Benefit
- Sickness Benefit – Extended Sickness Benefit & Enhanced Sickness Benefit
- Maternity Benefit
- Disablement Benefit – Temporary Disablement Benefit & Permanent Disablement Benefit
- Dependents Benefit
- Other Benefits – Funeral Expenses & Confinement Expenses
Additional benefits provided by Employees State Insurance Corporation
- Vocational Rehabilitation : To permanently disabled Insured Person for undergoing VR Training at VRS.
- Physical Rehabilitation : In case of physical disablement due to employment injury.
Frequently Asked Questions on Employees State Insurance Corporation
1. What is the salary limit for ESIC?
The limit for salary under ESIC is Rs. 21,000. And this amount is calculated by adding the basic pay and allowance like HRA, DA, medical allowance as well as commission.
2. Is ESI mandatory for employees?
Employees State Insurance Corporation is mandatory for employers having employees working in a non-seasonal factory with more than 10 employees, but only for employees who are earning less than Rs.21,000 per paycheck.
3. Which employees comes under ESIC?
The employees or workers at the organized sector and those working in the small factories and establishments are eligible for ESI Registration and claim benefits under it.
4. How can I check my ESI details?
To check ESI details, you may contact EAdvisors and get full details of the same. For your knowledge it can be checked through ESI online portal.
5. Can ESI be continued even after leaving job?
Definitely, Employees State Insurance Corporation (ESIC) can be continued and is valid after resignation also. ESI card will be valid till they contribute the next contribution or upto six months.
Conclusion
This was all about the overview of Employees State Insurance Corporation (ESIC). Hope you have gained good amount of knowledge from this guide on ESIC. For more clarification or if you have any doubts then, please feel free to reach EAdvisors at 9910000833.
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