What's New

Employee State Insurance Scheme (ESI)

Why in the News?

Employees’ State Insurance Corporation (ESIC) records a significant increase, with 18.88 lakh new workers added under the ESI Scheme in September.

Source: NewsOnAir.in

Employee State Insurance Scheme (ESI)

• The Employee State Insurance Scheme (ESIS) is an integrated measure of social security and health insurance program designed to provide financial protection and medical benefits against the impact of incidences of sickness, maternity, disablement and death due to employment injury to employees and their families in India.
• This scheme is managed by the Employees’ State Insurance Corporation (ESIC), a statutory body established under the ESI Act, 1948.
• Works under the aegis of Ministry of Labour & Employment.

Coverage:

 The ESI Scheme applies to factories and other establishment’s viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein 10 or more persons are employed.

Salary Threshold:

• Employees covered by the Act must have a monthly salary within the existing limit of Rs.21,000/- (Rs.25,000/- for Persons with Disability).
• Enrolling eligible employees in the ESI program is the responsibility of the employer.

Provisions:

• The insurance number of an employee remains unchanged as long as they stay within the ESIC wage limit.
• Switching jobs does not impact the insurance status, and the employee’s insurance number remains constant.
• In addition to the mentioned benefits, beneficiaries also receive support for
  • Confinement Expenses,
  • Funeral Expenses,
  • Vocational Rehabilitation,
  • Physical Rehabilitation, Unemployment Allowance (RGSKY),
  • Skill Upgradation Training.

The latest data from ESIC portrays a positive trajectory in workforce expansion, encompassing diverse demographics and ensuring a more inclusive social security framework.