The Employees' State Insurance (ESI) Scheme is a self-financing social security and labour welfare scheme, administered and regulated by Employees' State Insurance Corporation (ESIC), which functions under the Ministry of Labour and Employment, Government of India. The scheme runs as per the rules and regulations set forth in the Indian ESI Act of 1948.
ESI registration is mandatory for companies having 20 or more employees. For all the employees who are earning Rs 21000 or less every month as wages, the employer contributes 4.75% and worker contributes 1.75 % towards ESI, which add up to 6.5 %. This fund is managed by the ESIC to provide medical and financial benefits to the workers and their family through its huge system of branches, dispensaries and hospitals throughout India.
The ESI Scheme is one of the most popular schemes among employees engaged in various economic sectors in the country. The entities having ESI registration must file half-yearly ESI returns.
Employees enrolled under the ESI get several benefits like medical consultation and treatment for themselves and their families including paid medical leave.
ESI is a comprehensive social security scheme that safeguards the employees in the organized sector against the event of sickness, disablement or death while in employment. They are entitled to complete medical care. Their family members are also provided with medical care under this scheme. Here is a quick look at the benefits:
Employee and his/her family members are eligible to obtain full medical care under this scheme. Retired and permanently disabled insured employees and their spouses are also entitled to medical care under this scheme on payment of an annual premium of just Rs 120.
Employees get Sickness Benefit during the periods of certified sickness in the form of cash compensation at the rate of 70 % of the wages. They are only required to contribute for 78 days in a contribution period of 6 months in order to qualify for sickness benefit.
This benefit can be extended up to two years in the case of 34 malignant and long-term diseases at an enhanced rate of 80 per cent of wages.
Insured persons undergoing sterilization for 7 days/14 days (for male and female workers respectively) get benefit equivalent to full wages.
Female employees are eligible for maternity benefit for confinement/pregnancy up to 3 months. It can be further extended for 1 month on medical advice at the rate of full wages subject to contribution for 70 days in the preceding year.
If an employee meets with serious injury, he gets, irrespective of the contributions, temporary Disablement Benefit payable at the rate of 90% of wages from the day one of entering insurable employment as long as the disability continues.
The employee is paid this benefit at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board.
If an insured dies due to employment injury or occupational hazards, his dependants receives DB paid at the rate of 90% of wage in the form of monthly payment.
In the event of death of employee, an amount of Rs.10, 000/- is payable to the dependents or to the person who performs last rites. Vocational rehabilitation, physical rehabilitation, old age medical care and Rajiv Gandhi Shramik Kalyan Yojana, are some other need-based benefits provided to insured workers.
Our ESI experts can also help you compute ESI payments and maintain ESI regulation compliance for your business in an easy, cost-effective and smooth manner.
Payments: 15th of every month
Returns: May 11th and November 11th.
For ESI filings, monthly pay sheet is required for computing contribution amount for each employee.
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