The Employees State Insurance Scheme (ESIC Scheme) is a government program run by the Ministry of Labor and Employment to provide benefits to low-income individuals in India. The scheme offers free medical treatment and pensions to millions of eligible employees, who are issued ESI cards by the government. The Employees’ State Insurance Corporation is responsible for selecting the beneficiaries and companies with 10 or more employees are eligible to register for the scheme.
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ESIC scheme benefits are available only to those whose monthly income is below Rs.21,000. Both the employee and the company must contribute to the scheme, with 1.75 per cent of the employee’s salary being deducted and 4.75 per cent contributed by the company. For the first three years, the government covers the company’s share if the employee’s daily salary is less than Rs.137.
Under the ESIC scheme, the central government offers free medical facilities to low-income individuals and runs more than 150 hospitals and dispensaries in various states and union territories. Eligible employees and their families receive free medical treatment and are also entitled to cash benefits for sick leave. Women employees are granted maternity leave and receive full salary for 26 weeks after delivery.
In the event of the employee’s death, their family members are entitled to a pension of up to Rs.10,000. The ESIC scheme provides crucial financial support to low-income workers in India who may not have access to affordable healthcare and insurance.
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To apply for the ESIC scheme, companies with 10 or more employees must register for the program. Eligible employees are automatically issued ESI cards by the government. By providing free medical treatment, pensions, and other benefits to millions of low-income workers, the ESIC scheme plays an important role in promoting social welfare and reducing inequality in India.
