Understanding ESI vs. Workmen's Compensation: Which is Better for Your New Factory?

Kindly let me know the difference and advantages of ESI over the Workmen's Compensation Act. Which will be more suitable? What are the formalities for implementing the Workmen's Compensation policy in a new factory? I would like to start this for our workers. Kindly let me know.

Dear Shyam,

First of all, I would like to inform you that it is not your choice to choose between ESI or the Workmen's Compensation Act. Dear, you have to implement ESI if you have 10 to 20 employees, and your area falls under the jurisdiction of ESI. Where ESI is not applicable, you are liable to provide benefits under the Workmen's Compensation Act of 1923.

In the case of ESI, medical benefits are provided to your family, whereas no medical benefits are given under the Workmen's Compensation Act. You will only receive accidental benefits during the course of employment, but with ESI, you and your dependent family receive numerous medical and sickness benefits.

Thanks,
J. S. Malik