Employees State Insurance Scheme of India (ESIC) is a multi-faceted social security scheme designed to provide socio-economic security to ’employees’ in the organized sector. The ESIC scheme is run by the Union Ministry of Labor. It is called Employees State Insurance Corporation. This is such a scheme, which along with providing insurance cover, gives the benefit of health care facility to the family.
The benefit of this scheme is available to the employees working in private companies, factories and factories. ESI card is issued to the employee. If someone wants to take advantage of the free treatment available under ESI, then he has to go to the ESI dispensary or hospital. After which the treatment is done there on the examination of the card or document.
who can take advantage
According to the ESIC website, a new rule was implemented from January 1, 2017, under which employees earning 21,000 monthly income can also take advantage of the ESI scheme. Contributions are based on the earning capacity of workers as a fixed proportion of their wages, yet they are given Social Security benefits based on individual needs without discrimination.
Contribution to ESI Scheme
In the ESI scheme, there is a contribution from both the employee’s and the employer’s side. The employer’s contribution is paid by the central government for 3 years. The employees whose average daily salary is Rs 137, they do not have to contribute to it. At present, in the ESI scheme, the employee contributes 1.75 percent of the salary, the rate of contribution from the employer is equal to 4.75 percent of the employee’s salary.
Here are the benefits
Medical Benefit: Under this scheme, from the time an insured person starts insurable employment, he and his family are given full medical benefits. There is no limit on how much the employee can invest for the treatment. It provides medical benefits to retired and permanently disabled persons and their families, on payment of an annual premium of Rs 120.
Sickness Benefits: Employees contributing for 78 days in a contribution period of 6 months are paid in cash at the rate of 70 per cent of wages for sick leave for a maximum of 91 days in a year. Along with this, in case of 34 fatal and chronic diseases, the benefit is given to the employee for 2 years at the increased rate of 80% of the wages.
Maternity Benefit and Dependent Jan Benefit
maternity benefit: 100% cash payment of daily wages up to 26 weeks in case of abortion, up to 12 weeks in case of delivery during maternity leave. Apart from this, in case of illness due to pregnancy, confinement, premature birth, payment is made for more than one month.
Dependent Benefits: If an insured person dies in the course of employment, ESIC pays a fixed proportionate monthly pension to his dependents. Benefit is paid to the dependents of the Life Assured within a maximum period of three months from the date of death of the Life Assured. Thereafter payments are made on regular monthly basis.
Pension Benefits: After payment, the pension is divided into 3 parts- first the pension to the wife of the insured; Second pension to the children of the insured and thirdly pension to the parents of the insured. Dependents are paid 90 per cent of the employee’s daily wages as monthly payments.
Disability Benefit: Temporary Disability Benefit is available when the employee is affected by injury or occupational injury in the course of employment and is unable to work. This benefit is paid at the rate of 90% of the average daily wage till then.
other benefits
Funeral Expenses: From the first day of insurable work, an amount of Rs 15,000 is payable to the dependents or the person performing the last rites.
Imprisonment Expenses: An insured woman or an I.P. In respect of his wife in case of imprisonment at a place where suitable medical services are not available under the ESI Scheme.