This is an social security program for workers in the event of medical contingencies, such as sickness, maternity, death or disablement due to employment injury and occupational disease.ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.
Employees State Insurance Act, 1948 is a social welfare legislation enacted with the object of providing certain benefits to employees in case of sickness, maternity and employment injury. Under the Act, employees will receive medical relief, cash benefits, maternity benefits, pension to dependents of deceased workers and compensation for fatal or other injuries and diseases.
Anybody working in an organization (factory / private school /shop / hospital etc) whose pay (basic pay + dearness allowance if any) is less than / equal to 21000 per month is eligible for enrollment for ESIC. After enrollment 1.75% of your salary will be deducted as esic fee/contributions.