The Employee State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. The scheme is managed by the Employees' State Insurance Corporation (ESIC), which is an autonomous body created by the Government of India under the Ministry of Labour and Employment. The scheme provides medical, disability, maternity, and other benefits to employees and their dependents in case of sickness, maternity, and employment injury.
The Employee State Insurance Act (ESI Act) was enacted in 1948 to regulate the ESI scheme. The Act mandates employers to contribute a certain percentage of their employees' salaries to the scheme, and in turn, provides benefits to the employees and their dependents. The ESI Act covers factories and establishments employing 10 or more persons, and the employee's salary must not exceed Rs. 21,000 per month.
Under the Employee State Insurance (ESI) scheme, it has fixed the contribution rate of the employees at 0.75% of their wages and the employer's contribution at 3.25% of the wages for FY 2023-24.
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