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What is the Full Form of ESIC?
The full form of ESIC is Employees’ State Insurance Corporation.
What is ESIC?
The Employees’ State Insurance Corporation (ESIC) is a self-financing social security & health insurance agency working under the state government. It provides medical, financial, & other benefits to employees & their dependents in the event of sickness, maternity, disability, or employment-related injury. Established under the ESI Act, 1948, ESIC ensures financial & social protection to workers, fostering a safer & healthier working environment across organized sectors.
Why is ESIC Important?
- Provides financial protection during sickness, maternity, pregnancy, and injury.
- Ensures medical care for employees & dependents.
- Offers maternity & disability benefits.
- Promotes employee welfare & workplace security.
- Reduces employer burden through shared contributions.
What are the Roles and Responsibilities of ESIC?
- Administers employee health & insurance benefits.
- Manages ESI hospitals & dispensaries nationwide.
- Collects contributions from employees & employers.
- Processes claims for benefits and reimbursements.
- Monitors compliance with ESI Act provisions.
What are the Features of ESIC?
- Comprehensive medical & cash benefit coverage.
- Covers employees earning below the defined salary limit.
- Provides dependents’ benefits in case of death.
- Offers rehabilitation & unemployment allowances.
- Includes an employer and employee contribution mechanism.
How to Register for ESIC?
- Visit ESIC’s official portal.
- Click ‘Employer Login’ and choose ‘Sign Up.’
- Fill in the required establishment & employee details.
- Submit documents & generate Employer Code.
- Pay initial ESI contributions to activate registration.
Who is Eligible for ESIC?
- Employees earning equal to or less than Rs. 21,000 per month (Rs. 25,000 for disabled employees).
- Factories & establishments operating with 10 or more employees.
- Employees working in organized sectors are covered under the ESI Act.
- Apprentices not under the Apprentices Act but earning wages.
- Temporary or contract workers employed by covered establishments.
What are the ESIC Contribution Rates?
| Contributor | Percentage of Wages | Description |
| Employer | 3.25% | Contributes 3.25% of an employee’s gross salary. |
| Employee | 0.75% | Contributes 0.75% of gross wages monthly. |
FAQs
1. What happens if an employee’s salary exceeds Rs. 21,000 post-registration?
They remain covered under ESIC till the contribution period ends.
2. Can employees avail ESIC benefits in another state?
Yes, ESIC facilities are accessible across all networked regions.
3. Is ESIC applicable to contractual or outsourced workers?
Yes, if they work for covered establishments & meet wage limit criteria.
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