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.