What is ESI & Why is It Important?
Employees' State Insurance (ESI) is a mandatory social security and health insurance scheme
introduced by the Government of India under the Employees' State Insurance Act,
1948. It provides financial protection and healthcare benefits to employees in case of
sickness, maternity, disability, or workplace injuries.
The ESI scheme is funded through contributions from both employers and employees, ensuring
affordable medical care and income security for workers and their dependents. Employers with
10 or more employees (20 in some states) are legally required to register under
ESIC to provide these benefits and comply with labor laws.
Medical Care
Full healthcare coverage for insured employees and their dependents through ESI hospitals and dispensaries.
Financial Security
Maternity benefits, disability compensation, and unemployment allowance for employees and their families.
Legal Compliance
Ensures businesses meet statutory requirements and avoid penalties for non-compliance with labor laws.