ESIC stands for Employee State Insurance Corporation. It is the scheme that provides ESI (Employee State Insurance) to the employees in order to provide social, economic, and medical protection. The ESIC offers medical facilities, maternity benefits, unemployment allowance, disability, accident, injury, etc facilities to employees and their family members as well.
The eligibility criteria for ESI offered by ESIC
- An individual who is employed in a non-seasonal factory (regular factory/work unit) that has more than 10 employees. This rule applies under Section 2 (12) of the Act.
- The maximum salary of an employee must be INR 21,000 per month for him/her to come under the coverage of the ESI scheme.
Who is not eligible for the scheme?
- The ESIC scheme is not eligible for employees earning more than Rs.21,000 per month.
- In case a person disables the maximum salary limit is INR 25,000 per month.
- In Maharashtra and Chandigarh, the current limit for ESI coverage is still 20 employees and not 10 employees in the case of other states or UTs.
Reduced ESI contribution rates:
Employer share: 3.25%
Employee share: 0.75%
Benefits of ESIC registration
- Sickness benefits at the rate of 70% in the form of salary are paid 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
- In case of the death of an employee, 90% of the salary is given to his dependents every month after the death of the employee
- In case of disability of the employee, 90% of the salary is given to his dependents every month
- Funeral expenses are taken care
- Old age care medical expenses are taken care
- Maternity Benefit to the women who are pregnant in form of paid leaves