Employees’ State Insurance (ESI)

Posted in Human Resource Terms, Total Reads: 4691

Definition: Employees’ State Insurance (ESI)

ESI is an acronym for Employees’ State Insurance.

It is self-financing social security and health insurance scheme for Indian workers.

Objectives of ESI scheme are:

• To protect the employees in the organisation against the events of sickness, maternity, disablement, and death due to employment injury and

• To provide medical care to the insured employees and their family


The ESI Scheme is administer by a corporate body called the ‘Employees State Insurance Corporation’ (ESIC). ESIC works accordingly the rules and regulation stipulated by ESI act, 1948.

ESI contribution consists of employee’s share (1.75% wages) and employer’s share (4.75% of wages). The existing wage limit for ESI coverage is 15,000.


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