ESI full form is Employer sponsor Insurance. and it is a health insurance plan. It is an autonomous corporate body under the Ministery of Labor and Employment of the Indian Government.
It was acting on 24 February 1952 inaugurated by employee health insurance services and its rules established in the ESI act in 1948.
ESI has many benefits like unemployment, sickness, mentality, death, disablement, and another benefit has in ESI covers.
Now in India 2 cores employe and 7.5 cores employee family members have involved in the ESI scheme. Also under in this scheme 150 plus hospitals and 15000 plus dispensaries work under the ESI scheme.
What are the benefits of ESI?
1 – Those organizations will cover under the ESI program which has more than 10 employees then they can take benefits from ESI.
2 – Government decides to make the ESI scheme mandatory for all employees means all migrant worker also gets benefits from the ESI scheme.
3 – Government also provide medical benefits in the ESI scheme, suppose an employee can take individual medical expense by providing reasonable medical care under the state insurance corporation.
4 – It also provides disable benefits, lets assume an employee is disabled then that employee can be paid their monthly wages for the period of his injury in case of temporary or permanent disablement.
5 – In case of uncertain injury or involuntary loss of employment the ESI can provide a monthly salary for a maximum period of 24 months.
6 – ESI also provides Maternity benefits like in a household to the employee. ESI also provides 100% of daily wages for a period up to 26 weeks from the time of into going labor and 6 weeks of miscarriage and also 12 weeks of pay for adoptions.
7 – ESI provides Dependent Benefits, for instance, an employee in case of death at the workplace due to serious injury then ESI provides a monthly payment for his surviving dependents.
8 – Now recent in the financial year 2019 ESI provides a new rule that the Employee salary limit between 5000 to 9000 will also cover the ESI scheme. This scheme is available for medical benefits for the dependent parents of employees who undercover in insurance.
What is the Eligibility of ESI?
ESI also covers hotels, restaurants, shops, private medical, cinema halls, educational institutes, and other organizations in which 10 or more workers work in this field.
The second eligibility of the ESI scheme is whose employee has a monthly salary of 21000 or below then they can take ESI benefits.
In 2016 it reduces and ESI covers under 15000 to 21000 per month and later in 2019 minimum limit again decreased to 5000 to 9000 salary per month.
ESI scheme is one of the best government schemes by which all types of employees for example, from high designation employees to migrant workers all get benefits from ESI.
Basically, the ESI scheme is helping those people who don’t have sufficient money for an emergency situation and also those dependable and old parents who need monetary help.