ESI Registration

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What is ESI

ESI or Employee State Insurance is a self-financing social security scheme in India. ESI was originally applicable for factories that employed ten or more persons. Subsequently, the coverage of ESI scheme has been expanded. Currently, any factory or establishment employing ten or more persons drawing wages of upto Rs.21,000 per month must obtain ESI registration.

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Advantages

  • Medical Benefit - Full medical care is provided to all persons registered under ESI and their family members – from the day the person enters insurable employment. There is no ceiling on expenditure on the treatment of an Insured Person or his family member. Medical care is also provided to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs.120/-.
  • Maternity Benefit - Maternity benefit for confinement/pregnancy is provided for three months, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding year.
  • Funeral Expenses - An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment.
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