Glossary · HR, Payroll & Labour Law
ESI
Employees' State Insurance — a social security and health insurance scheme for Indian workers under the ESI Act, 1948.
ESI is mandatory for establishments with 10+ employees (20+ in some states) where the monthly salary is up to ₹21,000. The employee contributes 0.75% of gross salary and the employer 3.25%. The fund provides medical care through a network of ESIC hospitals, sickness benefit (70% of wages for up to 91 days), maternity benefit (26 weeks full wage), disability benefit, and dependent benefit. ESI is administered by the Employees' State Insurance Corporation (ESIC).
Examples
A factory worker earning ₹15,000/month contributes ₹112.50 toward ESI, getting free medical care for self and family at any ESIC hospital.