So, what is the eligibility criteria for employees? All employees whose monthly wages does not exceed Rs.21,000 are covered under this Act.
The units that have 10 or more employees or are located in the scheme-implemented areas are covered under this Act.Īlthough the establishments are covered under the Act, not all employees are covered under the Act. All the establishments that are covered under the Factory Act and Shops and Establishments are also eligible for ESI. The scheme provides both cash benefits and healthcare.Īll non-seasonal factories having 10 or more employees are covered under ESI. It protects the employees in times of uncertain and unfortunate events.
The ESI is the largest integrated need-based social insurance scheme for employees. The scheme is managed by the Employee State Insurance Corporation which is a government body, and it is governed by the ESI Act 1948. The Employee State Insurance (“ESI”) is a contributory fund that has contributions both from the employer and employee and enables Indian employees to take part in a self-financed, healthcare, insurance fund.
