Comprehensive Guide to ESI Benefits: Ensuring Health and Financial Security for Indian Workers

Comprehensive Guide to ESI Benefits: The Employees’ State Insurance (ESI) Scheme is soon going to benefit insured workers more. The beneficiaries will soon be able to avail of treatment at hospitals empanelled under the Ayushman Bharat Scheme, as the central government is expected to make it official. The expansion is carried out with the aim of enhancing health accessibility among workers and their families.

What is ESI?

The Employees’ State Insurance Corporation (ESIC) is a comprehensive social security scheme that endeavors to provide economic and medical cover to workers of the organized sector. Under the scheme, the insured employees, as well as members of their families, are provided treatment for all their health conditions, including fatal diseases. There are over 150 ESIC hospitals in India at present, providing general and specialized treatments.

Who is Eligible for ESI?

The ESI scheme extends to employees with a monthly wage of up to ₹21,000, whereas the threshold is raised to ₹25,000 for disabled employees. The employers are liable for enrolling the eligible employees under this scheme and providing them with the benefits as offered.

Employee and Employer Contributions

The ESI scheme is funded on a self-contribution basis where there is a contribution by the employer and the employee to the fund. The employee pays 0.75% of his or her earnings, and the employer pays 3.25% of the wage of an employee. The sum contributions fund the money so that assistance is always provided to needy workers.

Key Benefits of ESI

• The Employees’ State Insurance Scheme has many advantages, and hence, it is a vital support system for employees. They are listed below:
• Free medical treatment to covered employees and their dependents without any cap on medical expenses.
• Medical benefit during retirement to employees and their wives at a token premium of ₹120 per month.
• Cash benefit of 70% of wages for a maximum of 90 days in a year for illness.
• The dependents of a covered employee receive 90% of the salary as a monthly pension in case of death due to work-related accidents.

Insurance Number Does Not Change Even If There Is a Change in Job

One of the unique features of the ESI scheme is that the insurance number provided to an employee remains the same even in the event of a job change if the employee continues to earn within the range of eligibility. What this implies is that employees will not be denied their benefits because of any change in jobs.

With these added advantages, the ESI scheme continues to be an important health and financial safety net for workers and their dependents, reinforcing the government’s commitment to worker welfare and social security.