ESIC | Meaning and Definition


In the realm of social security and healthcare provisions for employees in India, the Employees’ State Insurance Corporation (ESIC) stands as a stalwart institution. Established under the purview of the Employees State Insurance Act, 1948, ESIC is dedicated to ensuring the welfare and protection of workers across the nation.

What is Employees’ State Insurance Corporation (ESIC)?

ESIC is a statutory body entrusted with the task of implementing and overseeing the Employees State Insurance (ESI) scheme. This comprehensive scheme provides financial and medical benefits to employees and their dependents in times of need.

What is Employees State Insurance Act, 1948?

The Employees State Insurance Act, 1948, serves as the legislative backbone for the ESIC. This landmark legislation mandates the provision of medical and cash benefits to employees and their families, thus safeguarding them against various contingencies such as sickness, maternity, disablement, or death due to employment-related injuries.

What are the benefits of ESI?

ESI offers a myriad of benefits to covered employees and their dependents, including:

  • Access to quality healthcare services at ESIC dispensaries, hospitals, and tie-up hospitals.
  • Cash benefits during periods of sickness, maternity, or temporary or permanent disablement.
  • Coverage for funeral expenses and rehabilitation services.
  • Financial aid to dependents in case of an employee’s demise due to employment-related injuries.

When is ESI Registration Required?

ESI registration becomes mandatory for establishments employing 10 or more employees (or 20 or more in certain states). Registration must be completed within 15 days from the date the Act becomes applicable to the establishment.

What are the ESIC Contribution Rates?

Both employers and employees contribute to the ESIC fund. As of now, the employee’s contribution rate is 0.75% of their wages, while the employer’s contribution rate is 3.25% of the employee’s wages, making the total contribution 4%.

What is ESI Card (Pehchan Card)?

The ESI Card, also known as the Pehchan Card, is issued to employees covered under the ESI scheme. It serves as a crucial identification document enabling them to avail of medical services and other benefits under the scheme.


Employees earning wages up to Rs. 21,000 per month are eligible for ESI coverage.

Yes, ESI is applicable pan-India, with variations in certain regulations across states.

Documents such as PAN card, address proof, employee details, and establishment documents are required for ESI registration.

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