Employees’ State Insurance (ESI) Scheme
The Employees’ State Insurance Scheme is a social insurance program set up under the Employees’ State Insurance Act, 1948. It protects employees against sickness, maternity, disablement, and death from employment injury, and provides medical care to insured persons and their families.
Compliances
- Form 01(A) – Form of Annual Information
- Employer Registration
- Employee Registration
- Form 1 – Declaration Form
- Form 2 – Addition/Deletion in Family Declaration
- Form 3 – Return of Declaration Form
- Form 6 – Register of Employees
- Form 9 – Claim for Sickness/Temporary Disablement Benefit/Maternity Benefit
- Form 11 – Accident Book
- Form 12 – Accident Report
- Form 14 – Claim for Permanent Disablement Benefit
- Form 15 – Claim Dependent Benefit
- Form 16 – Claim for Periodical Payment of Dependent Benefits
- Form 19 – Claim for Maternity Benefit and Notice of Work
- Form 20 – Claim for Maternity Benefit by a Nominee
- Form 22 – Funeral Expense Claim
- Form 23 – Life Certificate for Permanent Disablement Benefit
- Form 24 – Declaration & Certificate for Dependent’s Benefit
- Form 14 – Sickness, Temporary Disablement, or Maternity Benefit for Sickness
- Form 12A – Claim for Maternity Benefit for Sickness
- Form 21 – Maternity Benefit: Certificate of Expected Confinement
- Form 13 – Claim for Sickness, Temporary Disablement, or Maternity
Applicability Type of Establishment
Mandatory for:
- Factories employing 10 or more persons
- Shops, hotels, restaurants, cinemas, road transport undertakings, newspapers, educational or medical institutions (private or public), and other establishments notified by the government
Employee Strength
Applies once an establishment employs 10 or more people. In some states, the threshold is 20, depending on the state government’s notification.
Salary Limit
Employees earning gross wages up to ₹21,000 a month (₹25,000 for persons with disabilities) must be covered under the scheme.
Contributions
- Employer’s Contribution: 3.25% of wages
- Employee’s Contribution: 0.75% of wages
- Total Contribution: 4% of gross monthly salary
Note: Employers deposit both the employer’s and employee’s contributions with ESIC.
Key Benefits to Employees
- Medical care for the insured person and dependents
- Sickness benefits (70% of wages during certified sick leave)
- Maternity benefits
- Disablement and dependent benefits
- Funeral expenses
- Rehabilitation of disabled workers
More details are available here.
Exceptions
- Employees earning above ₹21,000 gross monthly salary are not covered.
- Some notified establishments or areas may be exempt, or brought under the scheme in phases.
Registration Requirements
- Employers must register with ESIC within 15 days of becoming applicable.
- Registration is done online through the ESIC portal.
Compliance Responsibilities
Employers must:
- Deduct and remit contributions monthly
- Maintain records of employees and wages
- Submit periodic returns (half-yearly)
- Provide ESI Cards to employees
References
Acts & Amendments
- Introduction of New Payment Mode for ESI Main Codes and Sub Codes
- Press Information Bureau: Enhanced ESI Wage Limit Ceiling to ₹21,000, from ₹15,000
- Amendment (6 October 2016): ESI Coverage Wage Limit Increased from ₹15,000 to ₹21,000
- Amendment (6 October 2016): Revised ESI Maternity Leave from 12 Weeks to 26 Weeks
- Amendment (25 July 2016): Gazette Notification — New ESI Rule for Areas Using ESI for the First Time
- Bare Act