The Employees’ State Insurance Corporation (ESIC) is a statutory social security body under the ownership of the Ministry of Labour and Employment, Government of India.  

The ESIC scheme was established in 1948 to provide social insurance to workers against sickness, maternity, disablement, and death due to employment injury, and to provide medical care to insured persons and their families.  

Some of the key features of the ESIC scheme include: 

• Coverage: The scheme applies to factories and other establishments with 10 or more employees, and employees earning up to Rs. 15,000 per month are entitled to social security cover under the ESI Act. 

• Benefits: The scheme provides six benefits to its subscribers, including medical benefits, sickness benefits, maternity benefits, disablement benefits, dependents’ benefits, and funeral expenses. 

• Infrastructure: The ESIC has set up hospitals, hospital annexes, dispensaries, and panel clinics to provide medical care to insured persons and their families. The Corporation has also set up Occupational Disease Centers for early detection and treatment of occupational diseases prevalent among workers. 

• Financing: The scheme is financed by contributions from employers and employees, with the employer contributing 4.75% of the wages payable to employees and the employee contributing 0.75%, totaling 4%. 

• Administration: The ESIC is administered by the Employees’ State Insurance Corporation, which is an autonomous corporation under the Ministry of Labour and Employment, Government of India. The Corporation is responsible for the implementation of the scheme, including the collection of contributions, disbursement of benefits, and management of the ESIC infrastructure. 

• Eligibility: To be eligible for sickness benefits under the Employees’ State Insurance Corporation (ESIC), an insured person (IP) must meet the following requirements: 

  • Have contributed for at least 78 days during the corresponding contribution period. 

  • Be continuously employed for two years with 156 days of contribution spread across four consecutive periods to access extended sickness benefits. 

  • Not be eligible for sickness benefits for the first two days of a new spell of sickness unless the previous spell ended within 15 days. 

• If these conditions are satisfied, the insured person becomes eligible for sickness benefit, which is 70% of the average daily wages at the maximum, capped at 91 days in two consecutive benefit periods. 

• Extended sickness benefits are available for individuals diagnosed with specific long-term illnesses, offering a rate of approximately 80% of the average daily wages at the maximum, with an initial period of 124 days, potentially extending to 309 days. 

​​​​​​​New enrollments to the Employees’ Provident Fund (EPF) and Employees' State Insurance Corporation (ESIC) reached their highest level in over three months in December, according to the government data released.

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