Its primary objective is to protect workers from health-related contingencies such as permanent or temporary disablement, sickness, death resulting from an employment injury or occupational disease, which impacts the worker’s earning capacity or leads to income loss. By participating in this scheme, workers are able to reduce financial burdens resulting from such unfortunate events and receive maternity benefits as well.
In addition to providing medical care for the insured and their dependents, the ESI scheme offers a wide variety of cash benefits when the insured loses their jobs or becomes disabled. As well as providing pensions in the event of death or injury due to occupational hazards at work, the scheme also provides dependent benefits to the family members.
How to use the ESI Scheme:
A beneficiary of ESI should be familiar with the following aspects:
- Be sure to provide your ESI Registration Number to your new employer if you change jobs.
- For services at ESI hospitals and dispensaries, an ESI Card/Pehchan Card is required.
- Be sure to follow your doctor’s instructions.
- In case you lose your ESI smart card, report it to the esic registration office or dispensary. While you can get the e-Pehchan card, getting one might be cumbersome.
Frequently Asked Questions:
Do employers need to register with ESI?
According to the ESI Act, employers must register their business entities/factories/shops for ESI benefits
ESI salary limits: what are they?
It is necessary for an employee or worker’s monthly salary to not exceed Rs.21,000 and Rs.25,000 for people with disabilities to be eligible for ESI.
Do overtime earnings count toward the ESI income limit?
While calculating the monthly wages of the worker or employee to be eligible for ESI benefits, overtime is excluded.
Do I have to pay the ESIC contribution by a certain date?
There is a 21-day time limit from the last day of the month.
ESI contributions that are not paid on time are subject to interest. What is the interest rate?
For each day a worker or employee does not pay their contribution, an interest rate of 12% is charged.
- ESIS records should be kept by the employer in what types?
An employer should keep a record of the worker’s income, books of accounts, muster roll, accident register, and inspection book in Form 11.
- In the event that the ESI beneficiary has taken treatment in a private hospital, can they claim an amount in ESI?
A claim can also be filed with the ESIC in case the treatment is taken from a private hospital, provided that the private hospital is approved by the ESIC. However, in case of an emergency, you can raise a claim with the ESIC if the treatment is taken from a private hospital.
- How can ESI be used by different types of establishments?
ESI can be utilized by the following types of establishments:
>Hotels or restaurants engaged in sales. >Shops. >Theatres and cinemas. >Newspaper establishments. >Road transport establishments. >Private education institutions.
- ESI codes: what are they?
In this scheme, each beneficiary receives an ESI code, which is a unique identification number of 17 digits.
Is there anything to do if an employee’s monthly wage exceeds Rs.21,000?
Until the end of the contribution period, the employee will remain an employee if his wages increase above Rs.21,000 in a month, and the contribution will be deducted from his wages.