ESIC – Employee State Insurance Scheme

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ESIC – Employee State Insurance Scheme

What is ESIC Scheme 2024?

Employees in the organised sector are intended to receive socio-economic security through the multifaceted Employees’ State Insurance Scheme of India (ESIC). The Employees’ State Insurance Corporation is a statutory corporate agency that oversees the administration of the ESIC Scheme. Employees are safeguarded against illness, pregnancy, disability, and death due to work-related accidents. Additionally, insured workers and their families receive medical care.  Read below to check the detailed information related to ESIC Scheme.

What is ESIC Scheme 2024?

The ESIC Scheme i.e., Employees State Insurance Scheme is a social insurance programme designed to shield workers against events like illness, disability, pregnancy, and death from work-related injuries that cause lost income. It also offers medical coverage to covered individuals and their families. The Act also guarantees workers and their dependents access to fairly good medical care. Under the ESI Act, the Employees’ State Insurance Corporation (ESIC) was established. It is an independent company governed by regulations overseen by the Indian government’s Ministry of Labour and Employment.

The corporation can raise and discharge loans with prior regulatory body clearance because it is a legal entity. It can also purchase both immovable and moveable property under its name. Furthermore, the corporation will retain all earnings from its operations.

ESIC Scheme Objective

The Government of India’s main goal in introducing the ESI scheme is to protect workers against certain health-related risks, like illness, death, and permanent or temporary disablement resulting from an occupational disease or work-related injury that reduces the worker’s ability to earn a living or causes income loss. With this programme, employees can lessen the financial strain brought on by such unfavourable occurrences. The programme also provides beneficiaries with maternity benefits.

Features & Benefits of ESIC Scheme 2024

Some of the key features and benefits of the ESIC Scheme are as follows:

  • The plan pays for the insured’s medical expenses through reasonable and cost-effective healthcare providers. Additionally, from the moment of hire, the worker or employee is protected.
  • If an employee is temporarily incapacitated, they are entitled to 90% of their monthly salary until they fully recover. 90% of the monthly salary is available for the duration of one’s life in the event of a permanent incapacity.
  • As per the programme, the recipient is eligible to receive 100% of their daily pay for a maximum of 26 weeks. If medical advice is received, this benefit may be extended for an additional month. Benefits are paid out in six weeks for miscarriages and twelve weeks for adoptions.
  • The arrangement provides cash flow for the duration of the medical leave. For a total of 91 days, the employee is eligible to receive 70% of their daily pay. This is available for use across two consecutive periods.
  • Workers or employees are covered by the plan as soon as they start working. This covers the insured person as well as any dependents.
  • Dependents of the insured are provided with financial support under the plan in the event of work-related illnesses or injuries. Dependents are entitled to monthly payments in such cases, which are split evenly among the surviving dependents.
  • An annual payment of Rs. 120 will be made to the insured and spouse upon retirement from employment upon reaching retirement age, under VRS or ERS, or upon being forced to stop work owing to a permanent disability.
  • A sum of Rs. 15,000 is provided by the ESIC to cover funeral expenses. This is given to the insured person’s dependents or to the person performing their last rites.

Eligibility Criteria for ESIC Scheme 2024

The below given entities are eligible to apply for ESIC Scheme

  • Non-seasonal factories employing 10 or more persons
  • Hotels
  • Restaurants
  • Shops
  • Road motor transport undertakings
  • Cinemas including preview theatres
  • Newspaper establishments
  • Establishments engaged in Insurance Business
  • Non-Banking Financial Companies,
  • Airport Authorities
  • Port Trust
  • Warehousing establishments
  • Private Institutes having 10 or more persons in employment
  • Medical and Educational Institutes having 10 or more persons in employment, etc

Required Documents for ESIC Scheme                                                            

Some of the important documents required for ESIC Scheme are as follows:

  • Registration Certificate
  • List of all employees working in the establishment
  • Certificate of Registration in case of a partnership or a company
  • PAN Card details of the Business Entity
  • PAN Card details of all employees.
  • Articles of Association and Memorandum of Association of the company
  • Employees Compensation details
  • Register which includes the attendance details of the employees
  • Cancelled cheque of the bank account of the company
  • List of shareholders and directors of the company

Working of ESIC Scheme

This programme depends on contributions to operate, and those contributions guarantee its self-financing. Within 15 days of the end of the month in which the contribution is due, the employer is required to take the employee’s contribution and deposit it with ESIC. Employers can deposit the contribution through approved banks in either an online or offline manner. The money is contributed by the employer and employee at a rate determined by the government. A predetermined percentage of wages are contributed in this way.

The rates of contribution are currently 1% of the employee’s pay and 4% of the employer’s pay. In addition, the contribution rate for the first 24 months of the recently formed setup is 1% for the employee and 3% for the employer. The employer may make contributions on behalf of workers whose daily pay is less than ₹137 in addition to these requirements. Employees paid less than ₹137 per day are not required to make any contributions.

Procedure for ESIC Scheme Employer Registration

Employers who have more than ten workers on any one day are compelled to register with ESI.

  • Initially, an ESIC registration Form-01 must be submitted.
  • It is anticipated that the corporation or firm would get a 17-digit unique identification number, also known as a code number, from the regional office within 15 days of submitting the Employer’s registration form (Form-01).
  • This special number will be used in scheme-related correspondence.
  • Form 1 is accompanied by a declaration in Form 3.

Procedure for ESIC Scheme Employee Registration

  • When an employee joins a Private Limited Company, they must fill out Form 1, or the Declaration form, and provide a copy of their family photo, which the company will submit to the ESI branch office.
  • Within three months of joining the ESI plan, an employee receives a permanent photo ID and an insurance number for identification purposes.
  • The registration may later be transferred in the event that the worker changes companies.

Do’s and Don’ts under the ESI Plan

Some crucial information that an ESI beneficiary needs to be aware of is listed below:

  • Make sure you provide your ESI Registration Number to your new employer if you change jobs.
  • To receive treatments at ESI hospitals and dispensaries, you must have an ESI Card, Pehchan Card, or e-Pehchan Card.
  • Observe the doctor’s advice to the letter.
  • Make sure the ESI smart card does not disappear. Even if you can obtain an e-Pehchan card, doing so could be difficult. Additionally, notify the ESIC dispensary or branch office of the card’s theft.

Contact Details

For further details or in case of any query or complaint related to the ESIC Scheme, feel free to contact on the below-given details:


ESI Head Office

Employees’ State Insurance Corporation

Panchdeep Bhawan

Comrade Indrajeet Gupta (CIG) Marg,

New Delhi – 110 002

Toll-Free/Help Desk Number: 1800-11-2526

Medical Helpline: 1800-11-3839

Official Website:-

E-Mail Id for Grievances/Suggestions: [email protected]

E-Mail Id for IT Related Issues: [email protected]

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