Employee State Insurance (ESI) is a social security and health scheme and is so administered by the Employee State Insurance Corporate (ESIC), a statutory body enacted by the Government of India. It falls under the purview of Ministry of Labour and Employment and seeks to provide benefits to employees and their dependants in case of sickness, maternity, injury or disability.
Under this scheme, both the employer and employee contribute a certain percentage of the employee salary towards the ESI Fund. The accumulated fund is then used to provide various benefits to such employees.
OBJECTIVES OF ESIC
BENEFITS OF ESI
There are several benefits associated with the ESI. We will look into one by one.
ELIGIBILITY FOR ESI
The provisions of Employee State Insurance Act, 1948 are applicable to the following establishments:
|4||Cinemas including preview theatres|
|5||Road motor transport Undertaking|
|7||Educational and Medical Institutions|
|8||Establishments engaged in Insurance business|
|9||Non-Banking Finance Companies|
Applicable on people drawing wages upto the limit of Rs. 21,000 per month. This limit is Rs. 25,000 in case of persons with disabilities.
The ESI Scheme is, by its’ nature, contributory. It means that the amount towards the ESI is contributed by both the Employer and the Employee as per ESI Act, 1948. These rates vary from time to time and one needs to look for the recent ones.
As of now, the rate of ESI Contribution is 4% of the monthly wages. Out of this 4%, 3.25% is to be contributed by the Employer while the remaining 0.75% is to be contributed by the Employee.
In Conclusion, the Employee State Insurance Scheme is and has been playing a crucial role in providing health and social security to the salaries individuals in India. This scheme has been successful in reducing the financial burden of medical expenses on the insured person.
The ESIC efforts to expand the scheme’s coverage and benefits have been commendable, and there is a need to continue to improve the quality of healthcare services and facilities under this scheme. It has also helped to create a secure and productive workforce which is very essential to country’s economic growth.
However, there have still been challenges such as administrative delays and overall efficiency of this scheme. Therefore, more efforts need to be put in to increase awareness of the scheme among the workers, especially those in the informal sector.
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