Employees State Insurance Corporation (ESIC): A Complete Guide for Employers and Employees

When it comes to social security for Indian employees, the Employees State Insurance Corporation (ESIC) plays a vital role. This government organization provides financial protection and healthcare support to millions of workers and their families.

What is Employees State Insurance Corporation (ESIC)?

Employees State Insurance Corporation (ESIC) is a statutory body established under the Employees' State Insurance Act, 1948. It operates under the Ministry of Labour and Employment, Government of India, and manages the Employees' State Insurance (ESI) Scheme, which provides medical and financial benefits to employees in case of sickness, maternity, disability, or death due to employment injury.

The ESIC functions as a social security organization and acts as both insurer and administrator of the ESI Scheme.

Objectives of ESIC

The key objectives of the Employees State Insurance Corporation include:

• Providing medical care to insured employees and their dependents.
  
  

• Offering cash benefits during periods of sickness, maternity, or temporary disability.
  
  

• Extending financial assistance to the dependents of deceased employees.
  
  

• Ensuring the rehabilitation of insured persons injured during employment.
  
  

• Supporting healthcare infrastructure through dispensaries and ESIC hospitals.
  
  

Who is Covered Under the ESIC Scheme?

✅ Eligibility Criteria for Employees:

• Employees earning a gross monthly salary of up to ₹21,000 (₹25,000 for people with disabilities) are eligible.
  
  

• The organization they work for must be covered under the ESI Act.
  
  

✅ Applicable Establishments:

• Factories or establishments employing 10 or more persons (in some states, this threshold is 20).
  
  

• Includes sectors such as manufacturing, services, hospitality, and education.
  
  

ESIC Contribution Rates (As of 2025)

The ESIC contribution is shared by both the employer and the employee:

Note: Employees earning less than ₹176 per day are exempt from contributing to ESIC, but employers must continue their share.

Benefits Provided by ESIC

The Employees State Insurance Corporation provides a wide range of benefits, making it one of the most comprehensive social security schemes in India:

1. Medical Benefit

• Full medical care for insured persons and their families from day one.
  
  

• Access to ESIC hospitals, dispensaries, and panel clinics.
  
  

2. Sickness Benefit

• Cash compensation at 70% of wages for up to 91 days in a year if the insured employee falls sick and cannot work.
  
  

3. Maternity Benefit

• Paid leave for up to 26 weeks for female employees (extendable in special cases).
  
  

• Includes prenatal and postnatal care.
  
  

4. Disablement Benefit

• For temporary or permanent disability caused by employment injury.
  
  

• Monthly payments depending on the extent of disability.
  
  

5. Dependents’ Benefit

• Monthly payments to dependents in case of death due to employment-related injury.
  
  

6. Funeral Expenses

• A lump sum of ₹15,000 paid to the eldest surviving member for funeral costs.
  
  

7. Rehabilitation Services

• Vocational training and medical rehabilitation for disabled employees.
  
  

8. Unemployment Allowance (Rajiv Gandhi Shramik Kalyan Yojana)

• Available for insured persons who lose jobs involuntarily.
  
  

ESIC Registration Process for Employers

Every eligible business must register with the Employees State Insurance Corporation. Here’s how: