What is Employees’ State Insurance (ESI) Scheme?

Ans – The ESI is a self-financing social security and health insurance scheme for Indian workers. For all employees earning ₹21,000 or less per month as wages, the employer contributes 3.25% and the employee contributes 0.75%, total share 4% effective from 1 July 2019. This fund is managed by the ESI Corporation (ESIC) according to rules and regulations stipulated there in the

ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family. ESI scheme is a type of social security scheme for employees in the organized sector.

Note 1: Calculation of ESI percentage on the basis of {Basic Salary + Dearness Allowance (DA) + Overtime + House Rent Allowance (HRA) + Travel Allowance (TA)} of employee.

· Benefits of ESI card

1. Medical benefit

2. Sickness benefit

3. Maternity benefit for women employee

4. Disablement benefit

5. Dependants benefit

6. Funeral expenses

7. Rehabilitation allowance