What is ESIC? Discover Its Benefits and Why They Matter
ESIC is a Government of India organisation designed to operate the Employees’ State Insurance scheme. In other words, it normally provides medical and financial benefits to employees and their families. Assistance is provided to the employee when he is incapable of performing his duties due to sickness, employment injury, or maternity. It is mandatory for all the organisations to enroll in the ESI scheme if they run a company with 10 or more employees. It is collected through the contribution of both employees and employers. 0.75% is deducted from employees’ gross salaries, while 3,25% is deducted from the employer’s side. In today’s guide we will explore what is ESIC, what is the full form of ESIC, who is covered under ESIC, and other several benefits of ESIC.
Who Falls Under ESIC Coverage?
ESIC stands for Employees’ State Insurance Corporation. Generally, ESIC covers those employees whose earnings are up to ₹ 21,000 per month and who are employed in organizations that employ 10 or more workers. Salary specifications for disabled employees are different, their maximum gross salary can be up to 25,000. However, the minimum number of workers can vary from state to state. It covers manufacturing industries, service sectors, and health care amongst others.
Key Features of ESIC
As we have already learned about what is ESIC and who falls under ESIC coverage, lets see some of the key features of ESIC:
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Benefits of ESIC
1. Medical benefits
The ESIC provides all medical care to the employees and their families. Some of these include:
- Outpatient Services: These services cover all the visits to the doctors for consultation and treatment.
- Inpatient Services: These services are provided to patients admitted to the hospital due to serious sickness or surgery.
- Specialist services: You can benefit from accessing specialists such as surgeons, radiologists, and physiotherapists.
- Maternity benefits: full benefits to women workers during pregnancy and childbirth.
2. Sickness Benefits
Financial support is provided to the employee who cannot work due to sickness. An employee is provided with 70% of his average salary. This amount is paid for a maximum period of 91 days in a year. In this way, employees can recover from their sickness without worrying about losing their income.
3. Maternity Benefits
Female employees can avail of maternity benefits when they are pregnant and can get paid for 26 weeks without working. Full wages are paid during the period. It can extend to a maximum of six months in case any complications arise. This is a very helpful and useful benefit for all the women working in any industry as it helps them balance their health and career.
4. Disablement Benefits
In cases of temporary or permanent disablement due to employment injury, ESIC does provide cash compensation:
- Temporary Disablement Benefit (TDB): If an employee gets injured during work, they are provided with 90% of wages while unable to work.
- Permanent Disablement Benefit (PDB): Workers experiencing permanent disability will be given 90% wages for life by ESIC.
5. Dependents' Benefit
If an insured employee passes away due to work-related disability or injury, the employer is responsible for providing monthly financial compensation to their family members.
6. Funeral Expenses
ESIC also provides financial assistance for funeral expenses. A big amount is paid to the family of the insured employee to cover the cost of the funeral.
7. Rajiv Gandhi Shramik Kalyan Yojana (Unemployment Allowance)
In case the insured employee lost their job due to factory closure or permanent disablement, they are eligible for an unemployment allowance. This scheme offers financial assistance for up to 24 months, providing security to workers who are suddenly put out of work.
What is IP Number in ESIC
The ESIC IP number stands for ESIC Insurance Number is a unique identification number assigned to every insured employee. This unique IP number is assigned to each person so they can be identified easily and can get ESIC benefits. It acts as a personalized reference to ensure easy access to ESIC services.
How to Avail ESIC Benefits
Why ESIC Benefits Matter
Conclusion
For the employees with low wages ESIC plays a big role by providing several financial, medical and social security benefits. Understanding what is ESIC is important, as these benefits help them raise their living standard and help them stabilize a more productive workforce. No matter if it is healthcare, maternity benefits, or protection against disability and job loss, ESIC ensures all employees and their families are cared for.
