FREQUENTLY ASKED QUESTIONS (FAQs)
The ESI Scheme is administered by a corporate body called the ‘Employees’ State Insurance Corporation’ which has members representing Employers, Employees, the Central Government, State Government, Medical Profession and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation
The scheme provides full medical care to the employee registered under the ESI Act, 1948 during the period of his incapacity, restoration of his health and working capacity. It provides financial assistance to compensate the loss of his/ her wages during the period of his abstention from work due to sickness, maternity and employment injury. The scheme provides medical care to his/her family members also.
The Employees' State Insurance (ESI) Scheme is one of the most popular schemes amid employees engaged in various economic sectors in entire India. This ESI scheme is administered and regulated by an autonomous and self-financing social security and labor welfare organization named ESIC, strictly as per the rules and regulations given in the Indian ESI Act of 1948.
ESI registration is required when a Company/firm/organization employs 10 or more persons, with individual wage/salary falling under the threshold limit of RS.15000/- per month. After registration, ESIC gives recognition to the employing entity and its employees through allotting a 17-digit unique identification code.
The ESI scheme is a self financing scheme. The ESI funds are primarily built out of contribution from employers and employees payable monthly at a fixed percentage of wages. The State Government concerned also contributes its share to meet the cost of Medical Benefit.