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What is the full form of ESI?
ESI Full Form: ESI or Employee State Insurance is a self-financing social security and health insurance scheme for Indian workers. The ESI scheme is managed by the Employees’ State Insurance Corporation (ESIC), which is an autonomous body under the Ministry of Labour and Employment, Government of India. In this article, let us learn more about ESI, ESI full form, the benefits of ESI, how to register for ESI, and other related info.
History of ESI
Employee State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. It is managed by the Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948.
The history of ESI dates back to the 1920s when a Royal Commission was set up to consider the question of workers’ welfare in India. The commission’s report recommended the introduction of a contributory system of insurance against sickness, maternity, disability, and death due to employment injury. However, it took almost three decades for the Indian government to implement the recommendations.
The ESI Act, 1948 was passed in the Lok Sabha on 24th June, 1948 and came into force on 1st July, 1952. The Act is applicable to non-seasonal factories employing 10 or more persons. It is also applicable to shops, hotels, restaurants, cinemas, road-motor transport undertakings, and newspaper establishments employing 20 or more persons.
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The ESI Act provides certain benefits to employees in the event of sickness, maternity, disability, or death due to an employment injury. These benefits include medical care, cash benefits, and other services. Employees are required to contribute 1.75% of their wages towards the ESI Scheme while employers are required to contribute 4.75%.
The ESI Act has since been amended several times to make it more comprehensive and to include more benefits for the workers. In 2010, the Act was amended to include a provision for the portability of benefits across different states. In 2012, the Act was further amended to provide for the payment of wages to the dependents of employees in the event of death or disability due to an employment injury.
In recent years, the ESI Scheme has gained immense popularity among the Indian workers and has helped to reduce poverty and improve the standard of living of many families across the country. The scheme has also helped to reduce the burden on the public exchequer as it is a self-financing scheme.
Today, the ESI Scheme covers over 50 million employees and their families in India and is one of the largest social security schemes in the world.
ESI Full Form
The full form of ESI is the Employee State Insurance Corporation. It is a social security system in India, established by an Act of the Parliament in 1948. The main purpose of ESI is to provide social security benefits to employees through a contributory fund.
The ESI scheme is applicable to all factories and establishments employing 10 or more persons. It provides insurance coverage to employees in case of sickness, maternity, disablement or death due to employment injury. It also provides medical care and cash benefits to the employees and their families. The employers and the employees both contribute to the fund, and the benefits are provided from the accumulated fund.
Who is Covered Under ESI?
Under the Employee State Insurance (ESI) scheme in India, the following categories of individuals are typically covered:
- Employees: Employees working in specific industries or establishments with more than ten employees and earning up to Rs. 21,000 per month are covered.
- Employers: Employers of the covered establishments are also required to contribute to the ESI scheme on behalf of their employees.
- Dependents: The scheme extends benefits not only to the employees but also to their immediate dependents, including spouses and children.
It’s important to note that the coverage and eligibility criteria may vary depending on the specific rules and regulations in place. The ESI Act is periodically updated to include more employees and industries under its purview.
Key objects of ESI
- The ESI Act, 1948 was enacted to provide financial aid for contingencies like temporary or permanent disability, maternity, illness, and work-related deaths.
- It also extends medical benefits to Indian workers in factories and companies with a minimum of ten employees, including their dependents.
Benefits of ESI
The Employee State Insurance (ESI) scheme offers several benefits to covered employees and their dependents. Some of the key benefits of ESI include:
- Medical Benefits: ESI provides comprehensive medical care to covered individuals and their family members. This includes access to outpatient and inpatient medical treatment, hospitalization, and specialist consultations.
- Cash Benefits: In case of temporary or permanent disability due to employment-related injuries or illnesses, employees receive cash benefits to compensate for lost wages.
- Maternity Benefits: Pregnant women covered under ESI are entitled to maternity benefits, which include paid leave and medical expenses related to childbirth.
- Sickness Benefits: Employees who are temporarily unable to work due to sickness receive cash benefits to partially replace their lost income.
- Funeral Expenses: ESI provides financial assistance for funeral expenses in the unfortunate event of an employee’s demise.
- Rehabilitation Services: Injured or disabled employees may receive vocational rehabilitation services to help them return to work.
- Dependents’ Benefits: The scheme covers the dependents of employees, such as spouses and children, providing them with access to medical care and benefits in case of the employee’s injury or death.
- Unemployment Allowance: Under certain circumstances, employees who lose their jobs may be eligible for an unemployment allowance.
- Confinement Expenses: ESI covers the expenses related to childbirth, including medical care and hospitalization during delivery.
- Extended Benefits: In addition to the core benefits, ESI offers various extended benefits like super specialty treatments, free medicines, and diagnostic services.
It’s essential to note that the specific benefits and coverage may vary depending on the rules and regulations of the ESI scheme and the individual’s eligibility criteria.
Required documents for ESI registration
The required documents for ESI registrations are as follows:
- PAN card of the business establishment or company.
- Address proof record of the business establishment or company.
- Copies of the registration certificate for Private Limited corporations.
- Registration Certificate for every organization.
- A detailed list of employees, including their monthly income.
- List of associates, directors, and shareholders of the company.
- Company’s bank statements along with proof of the commencement of operations.
Frequently Asked Questions (FAQs) on ESI
ESI stands for Employee State Insurance, a social security and health insurance scheme in India.
Employees earning a salary of up to Rs. 21,000 per month are eligible for ESI benefits in India.
ESI provides medical, cash, and maternity benefits, along with funeral expenses and vocational rehabilitation.
ESI contributions are typically calculated as a percentage of the employee's gross monthly salary, with both the employer and employee making contributions.
You can obtain an ESI card through your employer, who is responsible for registering employees under the ESI scheme and providing them with ESI cards.
No, ESI is applicable to employees earning up to Rs. 21,000 per month and working in specific industries or areas where the ESI Act is enforced.
ESI covers various medical benefits, including hospitalization, outpatient care, specialist consultations, and maternity services.
Employees covered by ESI cannot opt out of the scheme. It is mandatory for eligible employees.
You can check your ESI balance or status by visiting the official ESI portal or contacting your employer's HR department.
Yes, ESI benefits are transferable if an employee relocates to another area with ESI coverage. The employee can update their ESI details accordingly.
No, ESI benefits are primarily for employees in eligible industries. Self-employed individuals and freelancers are not covered under this scheme. What is ESI?
Who is eligible for ESI benefits?
What are the benefits of ESI?
How is ESI calculated?
Where can I get an ESI card?
Is ESI applicable to all employees in India?
What medical benefits does ESI cover?
Can employees opt out of the ESI scheme?
How can I check my ESI balance or status?
Are ESI benefits transferable to other locations in India?
Can self-employed individuals or freelancers avail of ESI benefits?
