It is a self-financing social security and health insurance scheme for Indian workers. ESI ka Full Form is Employee State Insurance. The ESI scheme is managed by the Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment, Government of India. The ESI scheme covers employees who earn a monthly wage of up to Rs. 21,000.
In this blog post, we will explore the ESI ka Full Form, ESI scheme in more detail and explain its benefits and features.
History of the ESI Scheme
The ESI scheme was first introduced in India in 1948 to provide social security to industrial workers. At that time, the scheme covered only a few factories in the country. However, over the years, the scheme has been expanded to cover more and more employees across various sectors.
How Does the ESI Scheme Work?
The ESI scheme is managed by the Employees’ State Insurance Corporation (ESIC), which is a statutory body established under the Employees’ State Insurance Act, of 1948. The ESIC is responsible for implementing the scheme and ensuring that all eligible employees are covered.
Under the ESI scheme, both the employee and the employer make contributions towards the scheme. The employee’s contribution is deducted from their salary, while the employer’s contribution is paid separately. The current rate of contribution is 0.75% of the employee’s salary for the employee and 3.25% of the employee’s salary for the employer.
The contributions are deposited with the ESIC, and the funds are used to provide medical, cash, pension, and other benefits to the employees covered under the scheme.
To avail of the benefits under the ESI scheme, the employee must be registered with the ESIC. The registration process involves filling out a form and submitting it to the ESIC, along with other documents such as the employee’s salary certificate, identity proof, and bank details.
Once the employee is registered, they are issued an ESI card, which contains their unique identification number.
Benefits of the ESI Scheme
The ESI scheme offers a range of benefits to employees covered under the scheme. Some of the key benefits are:
- Medical Benefits: The ESI scheme provides medical benefits to employees and their dependents. The scheme covers the cost of medical treatment, including hospitalization, maternity, and disability benefits.
- Cash Benefits: The scheme provides cash benefits to employees who are unable to work due to sickness or injury. The cash benefits are provided in the form of a daily allowance, and the amount is equal to 70% of the employee’s daily wage.
- Pension Benefits: The scheme provides pension benefits to employees who have reached the age of 60 and have completed at least 10 years of service. The pension amount is based on the employee’s average monthly wage.
- Unemployment Allowance: The scheme provides an unemployment allowance to employees who have lost their job due to circumstances beyond their control. The unemployment allowance is provided for a maximum period of one year.
- Funeral Expenses: The scheme provides funeral expenses to the dependents of employees who have died while in service. The expenses cover the cost of the funeral, including the cost of the coffin.
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Features of the ESI Scheme
The ESI scheme has several features that make it an attractive option for employees. Some of the key features are:
- Self-Financing: The ESI scheme is self-financing, which means that the funds for the scheme are generated from the contributions of employees and employers. The contributions are based on a percentage of the employee’s monthly wage, and the employer is responsible for deducting and depositing the contribution amount with the ESIC.
- Universal Coverage: The ESI scheme provides universal coverage to employees who earn a monthly wage of up to Rs. 21,000. This means that all eligible employees are covered under the scheme, regardless of their social or economic status.
- No Upper Limit: The ESI scheme has no upper limit on the number of medical expenses that can be claimed by an employee or their dependents. This means that employees can claim the full amount of their medical expenses, subject to certain conditions.
- No Waiting Period: There is no waiting period for employees to become eligible for benefits under the ESI scheme. This means that employees can claim benefits from the day they start working.
In conclusion, the ESI scheme is a comprehensive social security and health insurance scheme for Indian workers. The scheme provides a range of benefits to employees, including medical, cash, pension, and funeral benefits. The scheme is self-financing and provides universal coverage to employees who earn a monthly wage of up to Rs. 21,000.