What is esi?

ESI stands for Employee State Insurance and is a self-financing social security and health insurance scheme for Indian workers. It is managed by the Employees’ State Insurance Corporation (ESIC) and provides medical benefits and sickness benefits to employees and their dependents.

Under the ESI scheme, both the employer and the employee contribute a percentage of the employee's salary to the scheme. The employer's contribution is higher than the employee's contribution.

The ESI scheme covers various medical expenses, including hospitalization, maternity benefits, disability benefits, and funeral expenses. It also provides cash benefits during sickness, injury, or temporary disablement.

The ESI scheme is mandatory for employers with 10 or more employees who are earning a salary of up to Rs. 21,000 per month. It aims to provide financial protection to employees in case of illness, injury, or disability, and reduce the burden on the employees and their families.