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What is ESIC Scheme?

The ESIC or Employee State Insurance Corporation Scheme is a scheme that provides members with financial protection in case of an unfortunate health-related eventuality. This scheme also offers medical benefits, maternity benefits, disability benefits and unemployment allowance.

Today in these times, after the onset of the pandemic of coronavirus,  when the industries are still in a nascent stage and where the people in the country are still heavily dependant on a large assortment of imported goods and services, these are provided by either the developing or the developed parts of the globe. India, thus, being a self-dependent country has started developing the sector of the working class in order to ensure the manufacturing and labour jobs in the country.

Also, a workforce was also developing the country which is dedicated to ensuring that the industry in India is beginning to grow and thrive on its own. In order to ensure the protection of these workers in terms of finances and health, the Parliament of India implemented the Employee State Insurance Corporation Act. This was major legislation meant to garner the social security of the workers.

This Act encompasses health-related eventualities to which the workers are exposed daily. These eventualities could include any type of sickness, either temporary or permanent disability, disease contracted from a workplace, maternity, death due to any consequences in the employment and any kind of injury that results in loss of job or wages or the earning capacity of the labourer. Therefore, this ESIC scheme is mainly a financial safety net for the workers fighting against these ailments.

ESIC - Employees' State Insurance Scheme: Eligibility, Coverage And Benefits

ESIC Scheme- Eligibility Criteria

If a person wants to come under the umbrella of benefits offered by the Employee State Insurance Corporation Scheme, he needs to fulfil the eligibility criteria for the same. The eligibility criteria are decided and are set by the committee. The ESIC scheme is applicable to: –

  1. A person who is employed in a non-seasonal factory that has more than 10 employees. This applies under Section 2(12) of the Act.
  2. The wage limit of the employee is set at Rs. 21,000/- monthly, with effect from 1st January 2017 for him to come under the coverage of this scheme.

ESIC Coverage

The Employee State Insurance Corporation Scheme has been extended to shops, hotels, cinemas, restaurants, preview theatres, road motor transport undertakings and newspaper establishments.  This scheme has been extended to the Private Educational and different Medical Institutions that have employed 10 or more than 10 people. This point is only applicable in some States and Union Territories. This scheme is implemented in stages in each and every state in India except Manipur and Arunachal Pradesh.

This scheme has been notified in a total number of 325 complete districts out of the total 393 districts. Out of all these districts, 89 districts have been implemented this scheme partially.

Coverage ( on 31 March 2016) Particulars
Number of Employees 1.89 crores
Number of Insured Person Family Members 2.13 crores
Total Number of Beneficiaries 8.28 crores
Number of Employers 7.83 lakhs
Number of Insured Women 3.78 lakhs
Coverage ( on 31 March 2017) Particulars
Total Number of Beneficiaries 12.37 crores
Number of Insured Person Family Members 3.19 crores

What Are The Benefits of the ESIC Scheme?

This scheme has a lot of interesting features and benefits for the people. It not only provides medical benefits to the workers but also provides financial security in case of financial hardship such as unemployment. Some of the benefits of this scheme are mentioned below: –

  • Medical Benefits: – This scheme takes care of the people as it provides medical care and medical expenses. It comes into effect from the first day of the individual’s employment.
  • Disability Benefits: – If an employee is disabled, this scheme ensures that he is paid with his monthly wages for the period of his injury in case it is a temporary disablement or for the remaining of his life if there is a permanent disablement.
  • Maternity Benefits: – This scheme also helps an employee welcome her baby to the household with is showered with benefits. It provides 100% of the average daily workers for a period of 26 weeks, which is from the time of going into labour and is 6 weeks in case of a miscarriage. In case of adoption, 12 weeks of pay is provided to the workers.
  • Sickness Benefits: – This scheme ensures that there is a flow of cash coming into the household of the employee during his medical leave. Around 70% of the average daily wages is provided to the employee during his medical leave for a period of 91 days in two successive periods.
  • Unemployment Allowance: – ESIC scheme provides a cash allowance for every month for a maximum time of 24 months if there is permanent invalidity due to an involuntary loss of employment due to a non-employment injury.
  • Dependent’s Benefits: – If an employee meets with an ultimate death due to an injury at the place where he did his job. This scheme provides monthly payments apportioned among the dependents who survived.


✅ What is the ESIC Code Number?

It is a 17 digit unique number that is allotted to every employee of a factory that is registered under this act.

✅ What is the time limit for the payment of the contribution?

The payment has to be made within 21 days from the last day of the month.

✅ Is it mandatory for employers to register under the ESIC?

Yes, it is mandatory that a person who falls under the eligibility criteria of the ESIC scheme to register themselves.