When it comes to social security for Indian employees, the Employees State Insurance Corporation (ESIC) plays a vital role. This government organization provides financial protection and healthcare support to millions of workers and their families.

In this blog, we’ll cover everything you need to know about ESIC, including its objectives, benefits, eligibility, contribution rates, registration process, and more.

What is Employees State Insurance Corporation (ESIC)?

Employees State Insurance Corporation (ESIC) is a statutory body established under the Employees' State Insurance Act, 1948. It operates under the Ministry of Labour and Employment, Government of India, and manages the Employees' State Insurance (ESI) Scheme, which provides medical and financial benefits to employees in case of sickness, maternity, disability, or death due to employment injury.

The ESIC functions as a social security organization and acts as both insurer and administrator of the ESI Scheme.

Objectives of ESIC

The key objectives of the Employees State Insurance Corporation include:

• Providing medical care to insured employees and their dependents.
  
  
• Offering cash benefits during periods of sickness, maternity, or temporary disability.
  
  
• Extending financial assistance to the dependents of deceased employees.
  
  
• Ensuring the rehabilitation of insured persons injured during employment.
  
  
• Supporting healthcare infrastructure through dispensaries and ESIC hospitals.
  
  

Who is Covered Under the ESIC Scheme?

✅ Eligibility Criteria for Employees:

• Employees earning a gross monthly salary of up to ₹21,000 (₹25,000 for people with disabilities) are eligible.
  
  
• The organization they work for must be covered under the ESI Act.
  
  

✅ Applicable Establishments:

• Factories or establishments employing 10 or more persons (in some states, this threshold is 20).
  
  
• Includes sectors such as manufacturing, services, hospitality, and education.
  
  

ESIC Contribution Rates (As of 2025)

The ESIC contribution is shared by both the employer and the employee:

Note: Employees earning less than ₹176 per day are exempt from contributing to ESIC, but employers must continue their share.

Final Thoughts

The Employees State Insurance Corporation plays a crucial role in India’s labor welfare ecosystem. For employees, it offers a safety net that ensures access to healthcare and financial stability during tough times. For employers, it reflects social responsibility and ensures compliance with labor laws.

Whether you're running a business or starting your professional career, understanding ESIC is essential to making informed decisions about workplace benefits and legal obligations.

Frequently Asked Questions (FAQs)

Q1: Is ESIC mandatory for all companies?
Yes, if your business employs 10 or more employees (or 20 in some states) and their wages are within the ESIC limit, registration is mandatory.

Q2: Can employees opt out of ESIC?
No, employees who fall under the wage limit and work in a covered establishment are mandatorily enrolled.

Q3: What is the E-Pehchan Card?
It is a digital identity card issued by ESIC, which helps insured persons avail benefits and services.

Q4: What happens if an employee’s salary exceeds ₹21,000?
They are excluded from the ESIC scheme from the following contribution period.