ESI Benefits | 6 Ultimate Benefits Of ESIC Registration

Benefits; the stuff that makes anyone bend over it!

More likely, here we will discuss the same in the faith of ESI. Means that we will be illustrating ESI benefits…

Before that – let’s turn back a few pages and look after the ESI. Likely to be crawling as: What is ESI and much more about the same.

Note: In order to learn all about the ESI & its registration visit the ESI Registration portal page, formatted by LeadingFile!

LeadingFile – ESI portal page will describe you all about the same in detail.

Getting back to turned page query stuff i.e, What is ESIC & ESI?

->-> ESIC & ESI both are abbreviated as; “Employee’s State Insurance Corporation” and “Employee’s State Insurance”, respectively.

Fast forward according to the rules and regulations set forth in the ESI Act, 1948; ESI is a self-financing social security and health insurance fund scheme.

Whereon – it is no secret that the ESI scheme has been started for Indian workers and is fully managed by ESIC (Employee’s State Insurance Corporation).

With the flow, let’s jump over to the benefits of ESI. This is what to which we are here! Keep reading…

6 Ultimate Benefits Of ESI

An infographic to illustrate the same is attached from the source – LeadingFile.

As – ESI registration is one of the most reliable, beneficial and compulsory scheme, run by the government of India.

Being so and so, it covers all the risk factors of those who earn salaries (which is equivalent to 15,000 rupees per month or less) and is an employee working in an organized sector.

For such employers/e’s, ESI registration predicts the following social security benefits or advantages; elaborated as follows –

01: Medical Benefits

ESIC take care of your medical needs!

The responsibility of medical benefits depends on the state government. There are usually three types of medical benefits as shown in the table below:

Types Nature Of Problem Provided At
Primary Basic AilmentsESIS dispensary/Insured medical practitioners
Secondary Basic hospitalization including surgeriesESIS hospital
Tertiary (SST) Higher treatment and SurgeriesESIS hospital or ESIS hospitals

Later, the points illustrating the detail is as follows:

  • Full medical care is provided to an insured person and his family members from which day he enters insurable employment i.e. from the day of employment.
  • There is no limit to the expenditure on the treatment of the insured or his family member.
  • Medical care is also provided to retired and permanently disabled insured persons and their spouse on payment of a token annual premium of Rs 120.

However, there are certain conditions for super-specialty treatment as mentioned below:

  1. Continuous employment for 2 years on the date of diagnosis.
  2. An instant contribution of at least 156 days during the immediate 4 CP
  3. Due to at least 2 profit duration, the illness should be eligible for profit.
  4. After receiving a referral letter from Medical Superintendent ESIS Chikalthana Hospital, the treatment will be cashless.
  5. An emergency can be taken directly to any tie-up hospital for treatment and the formalities of the referral can be taken later.

02: Sickness Benefit

Sick leave is not a leave of earning!

The benefit of the sickness is usually in the form of cash given to the insured in the event of illness, resulting in absence of work and duly certified by a certified insurance medical officer.

Name of the BenefitsContributionsDurationRate
Sickness78 days contribution to be paid in a period of 6 monthsCompletely 91 days in 2 consecutive benefit periods70 % of the average wage
Enhanced Sickness78 days contribution to be paid in a period of 6 months07 Days for Men14 days for Women100 % of wage
Extended SicknessFor 34 specified long term disease.
2 years continuous employement and 156 days contribution in4 periods.
Maximum up to 730 days80 % of wag

This was all about the sickness benefit.

03: Disablement Benefit

Disability doesn’t mean the inability to earn!

Fast forward, the benefits are paid to insured employees suffering from physical inefficiency due to injury or occupational illness.

Note: The insured worker should be an employee on the date of the accident.

Name of benefitsContributory conditionDurationRate
Temporary disablementDay 1st of the insurable employment for the injury cases.As long as Temporary disablement last.90 % of the last wages.
Permanent disablementDay 1st of the insurable employment for the injury cases.For the whole life.As per loss of Earning Capacity calculated by the Medical Board.

Despite entering into insurable employment and paying any contribution, 90% salary is payable until there is no disability.

In the case of permanent disability on the basis of the limit of loss of certified capacity of a medical board, the permanent disability benefit is payable by the rate of 90% wages in the form of monthly payment.

04: Maternity Benefit

Welcome not only the baby, welcome benefits too!

Maternity benefit is payable to the insured women in case of abortion or related illness from pregnancy.

Name of benefitsContributory conditionDurationRate
Maternity Benefit70 days of contributions to be paid by the insured women in 2 previous contribution periods
Almost 26 weeks and 1 month more for the sickness arising due to pregnancy.  
100% of wag

Very often, the benefit for imprisonment/pregnancy is provided for three months, which can be extended up to one month on medical advice at the rate of full pay subject for 70 days contribution in the preceding year.

05: Dependent Benefit

Generally, the dependent benefit is abbreviated as – Family Pension!

Well, it is payable to the dependents of the deceased insured person, where death is due to employment injury or occupational illness.

Name of benefitsContributory conditionDurationRate
Dependent BenefitDay 1st of the insurable employment for injury cases.For Widows whole life or re-marriage.Son up to the age of 25 yearsDaughter till marriageWidowed mother dependent whole life90% of the wages, subject to the defined ration of the dependent.

In other words, depending on the rate of 90% of the wages, the dependents of the deceased insured person are paid as per the monthly payment, in such cases death is due to employment injury or occupational hazards.

06: Un-Employment Allowance

Loss of a job doesn’t mean the loss of income!

In the faith of involuntary loss of employment or permanent impurity due to non-employment injury, ESIC provides monthly cash allowance for a maximum of 24 months.

Fast forward, under the “Rajiv Gandhi Shramik Kalyan Yojna”, payment of any insured allowance is payable to an insured person, who becomes unemployed even after three or more years due to closure, retrenchment or permanent invalidity of the factory/establishment.

The unemployment allowances provided are as follows:

  • Unemployment allowance equal to 50% wage for a maximum period of one year.
  • During the IP, the ESI Hospital / Dispensary receives unemployment allowance for self and family medical care.
  • Business training provided for skill up gradation – Expenditure on duty/traveling travel by ESIC Travel allowance

This was all about the benefits of ESI aligned thought out the ESIC!


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Moving on – here in this blog, we have discussed the “ESI Benefits | 6 Ultimate Benefits Of ESIC Registration” which will succor you later to the ESI registration.

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