1. Summary
  2. ESI- Social Insurance theme in India
  3. Documents needed for ESIC registration
  4. Employee-employer contribution rate underneath the ESI theme
  5. Maternity advantages available under the ESI theme


Social Security Schemes to maneuver towards making a universal social insurance system for all Indians, especially the poor and also the under-privileged, 3 formidable Jan Suraksha Schemes or social insurance Schemes bearing on Insurance and Pension Sector were declared by the govt. within the allow 2015-16. The schemes were launched on the ninth might, of 2015, for providing life & accident risk insurance and social insurance at a reasonable value specifically (a) Pradhan Mantri Suraksha Bima Yojana and (b) Pradhan Mantri Jeevan Jyoti Yojana and (c) Atal Pension Yojana.  Let’s see regarding the social insurance theme and its relation to worker state Insurance

ESI- Social Insurance theme in India

The Employees’ State Insurance (ESI) theme underneath the ESI, Act, 1948 provides social insurance coverage to employees used in varied factories and institutions and covers contingencies like illness, maternity leave, and physical poor shape or death because of employment injury leading to loss of wages or earning capability.

The ESI Act stipulates the principles and rules that govern the functioning of the Employees’ State Insurance Corporation (ESIC), which successively manages the ESI fund.

The law needs each company, factory, or institution, using quite ten workers (20 in some states) with earnings up to Rs 21,000 (US$297) to register itself with the ESIC.

Documents needed for ESIC registration

  • Memorandum of association and articles of association of the company;
  • Name of all the workers operating within the company/factory;
  • Certificate of registration obtained underneath the Factories Act, or outlets and institution Act;
  • PAN card of the corporate and also the workers operating within the company;
  • List of administrators and shareholders of the company; and
  • The compensation details of all the workers.

Employee-employer contribution rate underneath the ESI theme

From Gregorian calendar month fifteen, 2019, the whole contribution for a subscriber is 5%, which is split between the leader at 4% and also the worker at 1% of their earnings (basic and allowances). The state government’s share within the ESI contribution is 1/8th which by the centralized is 7/8th.

Maternity advantages available under the ESI theme

The ESI theme provides maternity advantages at the speed of full wage subject to the insured woman’s contribution for a minimum of eighty days within the preceding 2 consecutive contribution periods. The theme additionally offers a confinement expense of Rs 5000 (US$70), if the confinement happens in an area wherever necessary medical facilities underneath the ESI theme aren’t on the market.

The benefits are on the market to insured ladies for up to an amount of twenty-six weeks (extendable by one month on medical advice), of which no more than eight weeks shall precede the expected date of confinement.

For insured ladies having 2 or additional extant kids, the theme offers maternity advantages for an amount of twelve weeks, of which no more than six weeks shall precede the expected date of confinement.

The definition of ‘insured woman’ includes:

  • A authorization mother who as the biological mother needs to possess a baby and prefers to urge embryo constituted in the other woman; or
  • A lady who lawfully adopts a baby of up to a few months more mature.
  • Women workers should note that those receiving wages throughout their maternity under the provisions of the ESI Act aren’t eligible to receive an identical profit underneath the provisions of the Maternity profit Act, 1961, or the other enactment.

Other general advantages on the market underneath the ESI theme

The ESI fund oversees the disbursal of medical and money advantages to the registered workers and their families. within the case of employment-related poor shape or death, the ESI Act provides for a poor shape profit and a family pension, severally.

Outpatient medical facilities are on the market in 1,418 ESI dispensaries and thru 1,678 non-public medical practitioners across the country. inmate treatment is out there in a hundred forty-five ESI hospitals and forty-two hospital annexes (19,387 beds). additionally, many government hospitals provide beds completely for the employment of ESI beneficiaries. There are 830 ESI centers wherever ESI subscribers will avail of their money advantages.

Other advantages include:

  • Unemployment allowance to employees WHO face involuntary state because of injury, or closure of mill or establishment;
  • Sickness advantages at the speed of 70% (in the shape of salary);
  • Old age treatment expenses;
  • Dependent benefits; and
  • Physical aid.