ESI refers to the Employee’s State insurance is a self-financing social security and health insurance scheme for Indian workers. This fund is managed by the Employees’ state insurance corporation (ESIC) according to rules and regulations stipulated there in the ESI act 1948. ESIC is an autonomous corporation by a statuary creation under Ministry of labor and employment, the government of India. If a corporation registers ESI, these are the benefits and disadvantages of ESI Registration.
Benefits of ESI
For all employees earning Rs.15000 (21000 from October 2016) or less per month as wages, the employer contributes 4.75% and the employee contributes 1.75%, Total share 6.5%. State govt. share is 1/8th and central govt. share is 7/8th. This fund is managed by the ESI Corporation according to rules and regulations stipulated there in the ESI act 1948, which oversees the provision of medical and cash benefits to the employees and their family. ESI scheme is a type of social security scheme for employees in the organized sector. The employees registered under the scheme are entitled to medical treatment for themselves and their dependents, unemployment cash benefits in certain contingencies and maternity benefits in case of women employees.
These medical benefits are available in 1418 ESI dispensaries and through 1678 private medical practitioners. Inpatient care is available in 145 ESI hospitals and 42 hospital annexes with 19387 beds and disablement benefits and family pension for disablement and death respectively.
Procedures to register ESI
The factory or establishment can apply for registration by submitting as employers Registration form (form-1). The organization will get an identification number called the code number. The code number is a 17 digit unique identification number. At the time of registration, the Employee is required to fill in form-I and submit a family photo in duplicate to the employer. These documents must be submitted by the employer to ESI office. The employee is then allotted an insurance number and issued a temporary identity card for availing medical benefits for him/herself and his/her family. Thereafter, a permanent identity card is issued, which can be used by the employee even after transferring jobs.