Understanding ESIC: How Does It Benefit Employees and What Should Companies Do?

I just wanted to inquire about ESIC. When ESIC is deducted from the employee's salary, how does it benefit the employee, and what procedures or actions need to be taken by the company to make it available to their employees?

Seniors, your assistance is greatly appreciated. I am eagerly awaiting your prompt reply.

Regards,
Meenu

I think you should have a look at the link below: https://www.citehr.com/49368-faq-pf-esi-income-tax.html. You will get answers to all of your questions.

To avail of the facility of ESIC, an employee's salary should be a maximum of 1,80,000 INR per annum (15 thousand gross per month). The employee has to fill out the form and provide a picture to the organization. For example, if an employee wants his mother and father to be insured under the ESIC facility, he/she has to provide one single picture of himself/herself and one picture with the mother and father. Once the company submits the form and pictures to the ESIC office, each employee will receive an ESIC card.

Validity of the ESIC Card

The validity of the card is one year (not sure if it is one year or six months). Along with the card, the employee receives a list of panelist doctors whom they can visit whenever they need any kind of medicine. This is generally how it works. Let's see what other professionals have to say about it.

Hope this helps.

Regards,
Monica

Understanding the Importance of ESI for Organizations

Okay, then you are talking about the company side. First, change your mindset that it is insurance. It provides a lot of relaxation when any problem arises. This is like a safety jacket for the organization.

You can easily understand what, when, and how benefits can be availed from the ESI. There are a lot of benefits for different purposes like medical, pension, disability benefit, death benefit, benefit to family members, and many more.

Awareness and Utilization of ESI Benefits

The most important thing is awareness among the employees/workers regarding the benefits and advising them to take advantage of their contributions. As you know, the employer's share in ESI is very high. If the employees of an organization are not benefiting from the contributions made by the organization for their safety and security, then there is no value in the contribution that the employer has made for them.

So, go through the ESI Act and Rules and train employees.

Regards

Benefits of ESI for Employees

The most important benefit is the medical benefit, which is free for all employees having the ESI insurance number. The ESI also pays the gross salary to any employee who avails medical leave, provided the same is not paid by the organization where he works. If he takes the employee smart card/Pehchaan card, he can get treatment throughout the country, though hospitals are also asking for the ESI Form 37 to find out if he is still working for an organization that is paying ESI contributions. Further, in the case of accidental death in service, the employee can get ESI pension.

Is the issuance of ESIC linked to the number of employees, similar to how PF is linked to at least 20 employees? If so, what is the threshold where the company becomes liable to pay ESIC based on the number of employees? Please guide me.

Regards,
Meenu

Employees earning below Rs 15,000 per month are eligible for ESIC benefits. Form-1: Initial Step for ESI Employees should fill out the form with complete details, including nominee information, and submit it to the ESIC branch office.

Benefits Under the ESIC Act Under the ESIC Act, employees are entitled to various benefits such as hospital benefits, maternity benefits, sickness benefits, super-specialty hospital benefits, reimbursement of medical expenses (depending on the situation), pension (in case of accidental death while in service), and funeral expenses, among others.

Please review and let me know if any further changes are required.

Minimum Number of Employees for ESI Registration

The minimum number of employees required for an organization to register with the ESI is 10.

Funeral Expenses for Employees

The legal heirs of an employee are eligible for funeral expenses, which amount to Rs. 10,000, if an employee dies while in service. To claim this benefit, you need to fill up Form 22, enclose the death certificate, and submit it to the ESI corporation.

Hi, my question has not been answered yet. I am inquiring whether ESIC is also dependent on the number of employees, aside from the salary bracket of 15,000. If it is linked to the number of employees, what is the minimum number required in the company?

Regards,
Meenu