Employee State Insurance Act
Employee State Insurance (ESI) Scheme of India is a social security scheme which is encompassed in the Employee State Insurance Act, 1948.
This scheme is designed to provide protection to employees, as defined in the Employees’ State Insurance Act, against the events of sickness, maternity, disablement and death on account of employment injury and extend medical care to persons insured under the Act and their families.
In other words, the ESI Scheme helps employees registered under the ESI Act, 1948 during the time of their inability to work due to sickness, employment injury etc.
This help is extended by providing such employees financial assistance. Such assistance makes up for the loss of salary for their incapacity to work and provide medical care to them as well as their family members.
Furthermore, it is a self-financing scheme in which funds are provided by the contributions made by the employers as well as the employees. Such contributions are made on a monthly basis at a fixed percentage of the wages paid to such employees.
Benefits of Employee State Insurance
- Sickness Benefit
- Maternity Benefit
- Disablement Benefit
- Dependent Benefit
- Funeral Benefit
- Medical Benefit
Applicability Of ESI
Employee State Insurance Act, 1948 (ESI Act) is a social security legislation aimed at providing benefits to employees in case of sickness, maternity, employment injury and certain other related matters. In other words, the Employee State Insurance scheme helps employees registered under the ESI Act, 1948 during the time of their inability to work due to sickness, employment injury etc. Under this self-financing health insurance scheme, funds are primarily built out of contribution from employers and employees. ESI fund, maintained by ESIC, is applicable to employees earning ₹21,000 or less per month to provide the cash and medical benefits to them and their families.