ESI, What is ESI, its Registration and Benefits

What is ESI?

ESI stands for Employee'sState Insurance. It is a self-financing scheme for Indian workers. In this scheme, workers get health insurance and social security. ESI corporation works as an independent corporation and comes under the Ministry of Labour and Employment in India. The corporation works under the guidelines of ESI Act. 1948. This act monitors the provision of cash and medical benefits to employees and their families.

What are the benefits of ESI Registration for Employee?

Employees who are registered under the ESI scheme, are entitled to get a range of benefits. Some of them are that the employees and their families can avail medical treatment and not just that they can avail surgical and obstetric (relating to childbirth and the processes associated with it.) treatment. That's why it advised for employees to register under the ESI scheme.

ESI registration procedure employee

At joining the Pvt. Ltd. company, an employee required to fill the declaration form along with a copy of the family photo which the employer will submit to ESI branch office.
Then, within 3 months a permanent photo ID will be provided to the employee and he will also be provided with an insurance number for his identification under this scheme.
The registration can transfer if the employee switches company.

Wage Limit under this registration

Employees with a salary more than 21,000 INR per month will not be covered under this scheme.
Wages limit for employees with Disability is 25,000 INR per month.
In this scheme, the employee will contribute 1.75% of his salary and the employer will contribute 4.75% of the employee's salary.