GUIDESMONEY MATTERS
ESI & ESIC: Meaning, Benefits, Eligibility & More
4 MIN • 
LAST EDITED BY PRANAV KARNAD ON APRIL 25, 2025.
LAST EDITED BY PRANAV KARNAD ON APRIL 25, 2025.
GUIDES LAST EDITED BY PRANAV KARNAD ON APRIL 25, 2025.
In this blog, we will cover the meaning of ESI (Employee's State Insurance) and ESIC (Employee's State Insurance Corporation), along with ESIC eligibility. We will also explore how one can claim ESIC benefits if applicable and the list of ESI hospitals under this scheme.
If you need to take medical leave, ESIC can help cover your expenses. You could get 70% of your average daily pay for up to 91 days per year. To qualify, you need to have worked for at least 78 days during the contribution period. And if you have a long-term or malignant disease, you may be eligible for an 80% enhanced rate of daily pay.
ESIC provides comprehensive medical benefits to employees and their families from day one of their insurable role. And for a nominal annual premium of ₹120, insured retirees and chronically disabled personnel, along with their spouses, can also avail themselves of ESIC insurance.
The ESIC Scheme also provides an Unemployment Allowance to insured individuals who have lost their job due to factors such as the company's closure, among other circumstances, as long as they have worked an insurable job for at least three years. Under this benefit, an insured employee with an ESIC account can receive medical assistance from ESI dispensaries or hospitals for up to two years, and they'll get an allowance equal to 50% of their pay. During this time, ESIC may also cover travel expenses related to vocational training.
ESIC provides maternity benefits to insured employees. An insured can get 100% of their median salary for twenty-six weeks of maternity leave which can be extended by one month. They must have contributed for 70 days in the two contributions prior to this. Six weeks of benefits are offered for miscarriages and twelve weeks for adoptions.
If an employee becomes disabled due to an occupational risk, ESIC provides financial assistance for both short-term and permanent disability. They can receive 90% of their reimbursement, and the same amount is payable to their dependents in the event of the employee's demise.
The ESIC eligibility and coverage in India is determined based on specific criteria related to an individual's employment, salary, and nature of work. Here are the key eligibility criteria for ESI:
If you possess a valid IP number or ESIC Insurance number, you are eligible to seek two categories of ESI benefits:
The Employees State Insurance Corporation (ESIC) has established partnerships with numerous hospitals nationwide. To access the comprehensive directory of ESI hospitals in India, please visit the ESIC Portal .
The ESIC scheme is a valuable program that provides financial security and comprehensive medical benefits to employees and their families in India. The scheme covers a range of benefits, including sickness, disability, unemployment, maternity, and more. The eligibility for the scheme is based on the employee's salary and the organisation's size. It is an important step towards promoting social welfare and ensuring a better quality of life for workers across India.
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The employer's contribution to the ESIC scheme is set at 3.25% of wages, while the employee's contribution is set at 0.75% of the wages. So, if you're enrolled in the ESIC scheme, your employer will pay 3.25% of your wages towards the scheme, and you'll pay 0.75%.
To qualify for the ESIC scheme, the employee or worker's monthly salary can't be more than ₹21,000 or ₹25,000 for those with disabilities. So, if you earn more than that, you won't be eligible for the scheme.
ESIC is a program in India that provides financial and medical support to employees and their families. It helps with things like sickness, disability, unemployment, maternity, and more. It's basically the country's social security system for workers.
ESIC is a program in India that provides financial and medical support to employees and their families. It's basically the country's social security system for workers, and it's administered by the Employees' State Insurance Corporation (ESIC).
Registering for ESI is mandatory for establishments employing 10 or more people and paying a monthly wage of up to ₹21,000 per employee.
