For companies with ten or more employees, ESI registration is mandatory.
Under the Employees’ State Insurance Corporation Act, 1948, ESIC (Employees’ State Insurance Corporation) provides benefits to employees who are sick, disabled, injured, or ill. A monthly income of less than Rs. 21000 is covered under this scheme. Both employees and employers contribute to funding it. Employees and their families are also eligible for benefits under this Act, in addition to their own employees. Those who employ ten or more employees are obligated by law to register under this Act. Employers pay 4.75%, employees 1.75%, thus making a total of 6.5%.
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Registration of ESI offers a number of advantages
- ESI Registered persons are entitled to full medical coverage, as are their family members, from the day they begin work.
- A woman who has been confined and/or pregnant for twenty-six (26) weeks will receive Maternity Benefit at the rate of full wage during the preceding two contribution periods, which may be extended by one month on medical advice.
- An employee is entitled to receive 90% of his or her monthly salary if he or she is disabled.
- Employees who are sick are entitled to 70% of their monthly salary as sickness benefits, capped at 91 days per year.
- Employee Death Benefits – In case of death, 90% of the employee’s salary is paid to his or her dependents.
- Expenses for funerals – An amount of Rs.10,000/- is payable to the dependents or persons performing the last rites from the day they enter insurable employment.
- The ESI Scheme does not cover confinement expenses incurred by the insured women or I.P. for their wives who are confinement at a place where the necessary medical facilities are not available esic registration
- An insured person who undergoes VR training at a VRS will be eligible for VR assistance.
- In the event of physical disablement as a result of an accident at work.
- The old age medical care plan is available at a cost of Rs 120/- per year if the insured person has reached the age of superannuation or is under VRS/ERS, or is experiencing a permanent disability and must leave service.
Frequently Asked Questions
- How does ESI benefit you? Employees of ESI enjoy a wide range of benefits, including medical coverage, disability coverage, death coverage, injury coverage, and maternity coverage.
- Can ESI benefits be transferred? Employee benefits cannot be transferred.
- How soon do the dependents receive ESI benefits? The ESI scheme pays monthly benefits to dependents of insured employees who die due to injury or disease caused by their occupation.
- If benefits are delayed, can the employer be penalized? A simple interest rate of 12% per annum is charged to the employer for every day of non-payment.