{"id":42056,"date":"2022-04-11T14:06:23","date_gmt":"2022-04-11T08:36:23","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=42056"},"modified":"2022-04-12T06:48:05","modified_gmt":"2022-04-12T01:18:05","slug":"employees-state-insurance-corporation-roles-and-objectives","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/employees-state-insurance-corporation-roles-and-objectives\/","title":{"rendered":"Employees State Insurance Corporation: Roles and Objectives"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Employees\nState Insurance Corporation is a government-backed institution that falls under\nESI Act, 1948. It is liable for the management of the ESI scheme. The ESI\nscheme refers to a worker welfare scheme that safeguards employees against\nfinancial crises arising out of medical conditions or death. <\/p>\n\n\n\n<p>The ESIC is headquartered in New Delhi. Besides, it has 23 regional and 26 sub-regional offices operating in the states. Apart from that, it has over 800 local offices pan India to ensure seamless implementation of the ESI scheme. Specialized institute like Medical Benefit Council acts as an advisor for <strong>Employees State Insurance<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Employees%27_State_Insurance\"><strong>[1]<\/strong><\/a><\/sup> Corporation.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/employees-state-insurance-corporation-roles-and-objectives\/#ESI_Scheme_Applicability\" >ESI Scheme Applicability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/employees-state-insurance-corporation-roles-and-objectives\/#Notable_highlights_of_the_ESI_scheme\" >Notable highlights of the ESI scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/employees-state-insurance-corporation-roles-and-objectives\/#ESIC_Contribution_Rates_mentioned_under_ESIC_Act\" >ESIC Contribution Rates mentioned under ESIC Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/employees-state-insurance-corporation-roles-and-objectives\/#Common_queries_around_Employees_State_Insurance_Corporation_and_the_ESI_scheme\" >Common queries around Employees State Insurance Corporation and the ESI\nscheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/employees-state-insurance-corporation-roles-and-objectives\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ESI_Scheme_Applicability\"><\/span>ESI Scheme Applicability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The ESI Act covers all non-seasonal production\nfacilities having ten or more workers. The state government has broadened the\nscope of Section 1(5) of the Act. The establishments like a hotel, commercial\noutlets, cinemas, publication houses, and private medical institutions are now\ncovered under the said section. Further, it is also encompasses Municipal\nCorporation\/Municipal Bodies having ten or more workers in certain State\/Union\nTerritories. <\/li><\/ul>\n\n\n\n<ul><li>The Central Government has broadened the scope\nof Section 1(5) of the Act to encompass the following establishments under its\nbelt. <\/li><li>Newspaper\nestablishments<\/li><li>Restaurants<\/li><li>Hotels<\/li><li>Port\nTrust<\/li><li>Insurance\nBusiness<\/li><li>Non-Banking\nFinancial Companies<\/li><li>Airport\nAuthorities<\/li><li>Warehouse\nhaving 20 or more workers <\/li><\/ul>\n\n\n\n<p><strong><em>The\npresent wage threshold for establishments under the ESIC Act is Rs 21,000\/month\n(Rs 25000\/month in case of individuals with disability)<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Notable_highlights_of_the_ESI_scheme\"><\/span>Notable highlights of the ESI scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Complete\nmedical care is facilitated by the ESI scheme to the worker registered under\nthe said Act at the time of his\/her incapacity, restoration of his\/her health\n&amp; working capacity.<\/li><li>During\nabsenteeism triggered by illness, maternity or work injuries resulting in loss\nof salaries, the relevant financial aid is provided to the workers to reimburse\nthe wage loss.<\/li><li>The\nscheme facilitates medical facilities for concerned family members also. As of\n31 Mar 2019, 3.14 crore workers are encompassed under this scheme, with the\ntotal no. of beneficiaries summing up to 13.3 crores.<\/li><li><strong><em>Generally, the benefits available under this\nscheme are classified under two categories:<\/em><\/strong><\/li><li><strong><em>Cash\nbenefits (which include maternity, illness, disablement (temporary and\npermanent), rehabilitation allowance, funeral expenses, medical bonus and\nvocational rehabilitation Non-cash benefits via medical facility.<\/em><\/strong><\/li><li>The\nscheme is contributory and self-financing in nature. The funds under the ESI\nscheme are mainly collected via employers&#8217; and workers&#8217; contributions payable\nper month at a fixed % of wages paid.<\/li><li>Presently,\nthe employee contribution rate has been capped at 0.75 per cent of the wages.\nLikewise, the rate for employers is 3.25 per cent of wages paid.<\/li><li>The\nemployer is liable to contribute from this share in favour of those serving\nemployees whose daily wage is around Rs 137 as these workers are exempted from\nthis own contribution.<\/li><li>The\nemployer is mandated to pay his\/her contribution and deduct workers&#8217;\ncontribution from wages and deposit with ESIC within 15 days from the\ncalendar&#8217;s last day in which the contribution falls due.<\/li><li>The payment can either be electronically or via\nauthorized public sector banks.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ESIC_Contribution_Rates_mentioned_under_ESIC_Act\"><\/span>ESIC Contribution Rates mentioned under ESIC Act<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<table class=\"table table-bordered\">\n  <strong><em>ESIC\n  contribution rates (Reduced with effect from 01\/July\/2019<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  <strong><em>Particulars<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Current\n  Rate (%)<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Reduced\n  Rate (%)<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Employer\n  Share\n  <\/td><td>\n  4\n  <\/td><td>\n  3.25\n  <\/td><\/tr><tr><td>\n  Employee\n  Share\n  <\/td><td>\n  1\n  <\/td><td>\n  0.75\n  <\/td><\/tr><tr><td>\n  Total\n  <\/td><td>\n  5\n  <\/td><td>\n  4\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_queries_around_Employees_State_Insurance_Corporation_and_the_ESI_scheme\"><\/span>Common queries around Employees State Insurance Corporation and the ESI\nscheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>What\nare the common benefits of the ESI scheme from an employees&#8217; standpoint?<\/em><\/strong><\/p>\n\n\n\n<p>The ESI\nscheme facilitates medical facilities for the workers falling under the ESIC\nAct during the period of his\/her incapacity.<\/p>\n\n\n\n<p>It also\nensures the availability of financial aid to reimburse wage losses triggered by\nabsenteeism due to certain medical conditions and injury. The scheme also\nrenders medical care to the employee&#8217;s family members.<\/p>\n\n\n\n<p><strong><em>Who is\naccountable for handling the affairs of the ESI scheme?<\/em><\/strong><\/p>\n\n\n\n<p>The ESI\nscheme is managed by a government institution known as Employees State\nInsurance Corporation. It comprises members from different government\nbackgrounds.<\/p>\n\n\n\n<p>The\nDirector-General of the Employees State Insurance Corporation has the\ndesignation of chief executive officer and an ex-officio member.<\/p>\n\n\n\n<p><strong><em>How\ndoes ESIC arrange funds to operate the ESI scheme?<\/em><\/strong><\/p>\n\n\n\n<p>The ESI\nscheme is contributory and self-financing in nature. The ESIC arranges the ESI\nfund via monthly contributions from the employers and workers. Such\ncontributions are made out of wages paid at a standard percentage. The state\ngovernments also contribute 1\/8th share of the expenses of medical benefits.<\/p>\n\n\n\n<p><strong><em>Which\ntype of establishment falls under the ESI scheme?<\/em><\/strong><\/p>\n\n\n\n<p>The\nCentral Government released a notification that states that all factories where\nten or more workers are hired shall fall under the ESI scheme. Following is the\nlist of establishments is covered under the ESI scheme in light of said\nnotification:<\/p>\n\n\n\n<ul><li>Shops<\/li><li>Hotels\nor restaurants only engaged in &#8216;sales.&#8217;<\/li><li>Road\nmotor transport establishments<\/li><li>Cinemas,\nincluding preview theatres<\/li><li>Newspaper\npublication<\/li><li>All private educational institutions and medical\ninstitutions<\/li><\/ul>\n\n\n\n<p><strong><em>Who is\naccountable for fixing the contribution rate of the ESI scheme?<\/em><\/strong><\/p>\n\n\n\n<p>The GOI formulates, re-formulates, and underpins the contribution rate for the ESI scheme. The rates are re-formulated from time to time. In 2019, the GOI reduced the workers&#8217; contribution rate by 0.25 per cent, which came into effect on 01\/06\/2019.<\/p>\n\n\n\n<p><strong><em>Is ESIC\nserves as a mandate for all employees?<\/em><\/strong><\/p>\n\n\n\n<p>Yes.\nAll the establishments falling under the ESI Act and all production facilities\nthat employ more than ten workers and pay wages lower than Rs 21,000\/month (Rs\n25000 for workers having a disability) must register under ESIC Act and make a\nprescribed contribution towards the scheme. All the employees earning a salary\nof more than Rs 21,000\/month has been put outside the ambit of this scheme.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> <a href=\"https:\/\/corpbiz.io\/learning\/category\/government-registration\/esi\/\"><strong>Employees State Insurance<\/strong><\/a> Corporation works for the welfare and empowerment of millions of workers serving organized and unorganized sector. Their scheme, i.e. ESI scheme, empowers workers to get back on track and have access to necessary aid during testing times.\u00a0 The scheme also facilitates much-needed medical care for those who received injuries during work. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/employees-state-insurance-esi-scheme-in-india\/\">https:\/\/corpbiz.io\/learning\/employees-state-insurance-esi-scheme-in-india\/<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Employees State Insurance Corporation is a government-backed institution that falls under ESI Act, 1948. It is liable for the management of the ESI scheme. The ESI scheme refers to a worker welfare scheme that safeguards employees against financial crises arising out of medical conditions or death. The ESIC is headquartered in New Delhi. Besides, it [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":42060,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[213],"tags":[2246],"acf":{"service_id":"14"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":8453,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42056"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=42056"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42056\/revisions"}],"predecessor-version":[{"id":42066,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42056\/revisions\/42066"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/42060"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=42056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=42056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=42056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}