Employee State Insurance Scheme (ESIS)

Gaurav works for an IT company in Bangalore. He lives with his mother and two sisters, who are still studying. As a working professional and the sole bread earner of his house, he has a huge responsibility on his shoulder. Even though he earns a decent salary, he often faced health issues. Gaurav often found himself feeling concerned regarding his health conditions.

One sunny afternoon as Gaurav was sipping on a soda in the office cafeteria, his colleague, Deepak, walked up to him. Both delve into a conversation when Gaurav shares about his worry regarding financial security for his family in case something happens to him. Deepak immediately catches Gaurav’s attention by informing him of the Employee State insurance Scheme (ESIS) and says that it was a great way to provide and ensure security to the entire family. It also helps ins safeguarding the social security of employees.

So, what is ESIS? Let’s take a look.

What is ESIS?

The Employee State Insurance Scheme is developed for the safety of employees under the Employee State Insurance Act, 1948. It is an integrated social system that protects an employee if there’s sickness, physical injury, disability, etc. It also provides medical facilities and also helps an employee get cashless benefits in case of job loss.

This scheme was introduced for the first time by the government of Kanpur in 1952. Soon after that, the scheme was also launched in Delhi. The scheme covered 1,20,000 employees. The first employee to be covered under the scheme was the Prime Minister of India.

ESIC 2.0

Shri Narendra Modi, Hon'ble Prime Minister launched a series of Health Reforms initiatives of ESIC on 20.07.2015. Various changes have been implemented in the scheme to enhance the coverage. Health Reforms Agenda of ESIC includes online availability of Electronic Health Record of ESI Beneficiaries (Insured Persons and their family members). The records will also include laboratory reports in digital form, which would eliminate the process of visiting hospitals for getting the required information.

The health reforms for employees are mentioned below:

• Abhiyan Indradhanush
• Online Health Record of Beneficiaries
• Cleanliness drive as part of Swacch Bharat Mission
• Special OPD for Senior citizens
• Special OPD for differently-abled persons in ESIC hospitals
• Medical helpline number for emergency and guidance seeking

Note: The Pradhan Mantri Jan Arogya Yojana (PM-JAY) scheme is formed by submitting schemes including the Employee State Insurance Scheme (ESIS).

Features of ESIS

1. Maternity Cover

The scheme provides a maternity cover for 26 weeks. Note that the cover can also be extended up to one month if your Income is subjected to contribution for 70 days.

2. Payment in Instalments

During unfortunate events, the beneficiaries are offered payments in instalments.

3. Coverage for Unemployed Member

The scheme also provides financial coverage up to 3 years for an unemployed member. This is subjected to the disclosure of details like the previous place of work and permanent invalidity.

4. Employee Wage for Disabled

The scheme also supplies 90% of the employee’s wage when an individual becomes temporarily or permanently disabled.

Benefits of ESIS

The benefits of the Employee State Insurance Scheme is mentioned below:

1. Unemployment Allowance

ESIS scheme acts as a source of income if you have been fired from your previous job or have resigned.

2. Maternity Income

ESIS scheme also provides maternity benefits for to-be mothers. Women usually take some time out when it comes to pregnancy. This scheme provides a steady flow of income during such a time.

3. Death Benefit

When an employee is secure under this scheme, in case of death of the employee, a steady flow of income is provided to the family members.

4. Medical Benefit

For the insured employee under ESIS, medical coverage is provided for the entire family. The government of India has also launched the Ayushman Bharat Yojana in order to provide good health service to the marginalised section of the society.

5. Dependents Benefit

If you are to lose a steady flow of income from work due to a physical injury, you will be receiving the income for the family every month because of secure coverage under ESIS.

6. Sickness Benefit

You can vail 70% of the total salary during a medical leave. This service is available for 91 days since the beginning of the sick leave.

7. Disability Benefit

In case of temporary disability, ESIS gives 90% of monthly payments until recovery. In case of permanent disability, the monthly payments are 90% salary for an entire lifetime.

ESIS Registration and Documents Required

According to ESIS, companies with more than 10 employees have to register with the Employee State Insurance Corporation (ESIC). Employees earning less than Rs. 21,000 per month will contribute 1.75% of salary toward ESIS and the employer will contribute 4.75% toward the same. A total contribution will then be 6.5% toward ESIS. Employees, earning less than Rs. 137 a day as daily wages, are exempted from payment of their share of contribution.

Note that the company has to register within 15 days of eligibility.

Two main procedures have to be followed by employers. They are mentioned below:

1. Download Form No. 1 (Employers Registration Form) in PDF. Fill all required details

2. Submit with required documents.

The required documents are mentioned below:

• Certificate of registration from the Factories Act and Establishment Act
• Memorandum and Articles of Association
• Employee List and Details
• Registration Certificate for an entity based on partnership
• Annual income details
• Company directors names
• shareholders names
• Employees attendance account
• Canceled Bank leaf

Conclusion

The Employee State Insurance Scheme is a boon for employees. It provides care for various aspects associated with their lives which brings in a sense of security.