About Employee State Insurance:
Employee State Insurance is a self-financed comprehensive Social Security Scheme for social protection of the covered ’employees’ in the organized sector, against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
ESI is a compulsory for entities employing 10 or more persons. An employee who earns less than Rs. 21,000 per month contributes 1.75% of his/her salary towards the ESI where as the employer pays 4.75% towards the ESI making a total of 6.5%, payable to their employees.
Entities covered under ESIC
- Restaurants or Hotels only engaged in sales.
- Road Motor Transport Establishments
- Newspaper establishments (which is not covered under the factory act)
- Priv ate Educational Institutions
Benefits of ESI:
- Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year
- Medical Benefits to an employee and his family members
- Maternity Benefit to the women who are pregnant (paid leaves)
- If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee
- Same as above in case of disability of the employee
- Funeral expenses
- Old age care medical expenses