ESI Act, 1948

The Employees’ State Insurance Act, 1948 is a social security legislation providing medical care and cash benefits in sickness, maternity, disablement and death due to employment injury. It is administered by the ESI Corporation (ESIC), a body corporate.

• Applies to non-seasonal factories employing 10 or more persons; extendable to other establishments with 10+ employees in implemented areas.
• Wage ceiling for coverage (as revised) is ₹21,000 per month (₹25,000 for persons with disability).
• Contribution: employee 0.75%, employer 3.25% of wages (rates have been revised; learn the latest notified rates).
• Benefits: medical, sickness, extended sickness, maternity, disablement (temp/permanent), dependants’, funeral expenses, unemployment allowance (Atal Beemit Vyakti Kalyan Yojana).
• Sickness benefit: 70% of wages for up to 91 days in two consecutive benefit periods, subject to contributory conditions.
• Maternity benefit: 100% of wages for 26 weeks (aligns with Maternity Benefit Act for insured women).
• ESIC is chaired by the Union Labour Minister; Director General is the chief executive.