Employee State Insurance, or ESI for short, is run by the Employee State Insurance Corporation. It is a contribution given by both employers and employees to help Indian workers participate in self-financed insurance and healthcare programs. Employee Social Security Insurance (ESI) offers social-economic protection to workers in the event of an accident, illness, maternity leave, or other emergency.
The ESI Act of 1948 governs the ESI Scheme, which offers complete medical treatment until the worker returns to a normal, healthy state. According to the plan, any company with more than ten employees (or twenty in some states) and a maximum salary of INR 15,000 must register with the ESIC. It offers monetary assistance to make up for losses brought on by illness or other medical conditions.
How is ESI determined?
According to the ESI Act, the company contributes 3.25% of salaries or wages received or payable, while the employee contributes 0.75%.
