ESIC

ESIC stands for the Employees’ State Insurance Corporation. It is a social security organization established by the Government of India under the Employees’ State Insurance Act, 1948. The ESIC provides comprehensive medical, disability, maternity, and other benefits to employees working in the organized sector in India.

Here are some key points about ESIC:

  1. Coverage: ESIC applies to factories and establishments employing 10 or more employees, with some exceptions based on factors such as the salary threshold. It covers both employees and their dependents.
  2. Medical Benefits: ESIC provides medical benefits to insured employees and their dependents. This includes outpatient, inpatient, and specialist medical care, as well as diagnostic services, medicines, and surgical procedures.
  3. Cash Benefits: In addition to medical benefits, ESIC provides cash benefits to insured employees during periods of sickness, disablement, or maternity. The amount and duration of cash benefits vary depending on the nature and duration of the insured person’s incapacity.
  4. Contribution: Both the employer and the employee contribute a percentage of the employee’s wages to the ESIC fund. As of my knowledge cutoff in September 2021, the employer’s contribution is 3.25% of the wages, while the employee’s contribution is 0.75% of the wages.
  5. Registration: Employers covered under the ESIC scheme are required to register themselves and their employees with the ESIC. This registration process involves submitting relevant details and documents to the ESIC authorities.
  6. Compliance and Inspections: Employers are required to comply with the ESIC regulations, maintain records of employees, and regularly submit contributions to the ESIC fund. The ESIC authorities conduct inspections and audits to ensure compliance with the provisions of the Act.
  7. ESIC Hospitals and Dispensaries: ESIC operates its own network of hospitals, dispensaries, and clinics across the country. These medical facilities provide healthcare services to insured employees and their dependents.

It’s important to note that specific details regarding coverage, contribution rates, and benefits may have been updated since my knowledge cutoff in September 2021. It’s advisable to refer to the latest provisions of the Employees’ State Insurance Act and consult with the ESIC authorities or legal professionals for the most up-to-date information.