Employees’ State Insurance (ESI)

Published by MBA Skool Team, Last Updated: January 22, 2018

What is 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.

 

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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