About ESI and Its Applicability

Employee State Insurance is a self-financing social security scheme and health insurance plan for Indian workers, offering medical and disablement benefits. Governed by the ESI Act, 1948, it is managed by Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment. ESIC is expected to manage the fund as per the rules and regulations set forth by the Act.

Applicability of ESI:

The ESIC is mandatory to all companies or employers having 10 or more workers. ESI provides benefits to workers earning Rs.15, 000/- or monthly. Now the limit has been increased to Rs. 21000/- per month. Every employer must contribute 3.25 percent of the employee wages and every employee must contributes 0.75 percent of his wage towards ESI contribution.