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ESIC Full Form

The full form of ESIC is the Employees State Insurance Corporation. It is a state-run organization set up under the 1948 Employee State Insurance Act and is responsible for overseeing the ESI plan. The organization aims to provide social services to the Indian workers (laborers), including members of their families, who receive below Rs. 25000.

ESIC structure

  • The Central Government appoints ESIC Director-General.
  • The corporation’s executive powers are conferred on a standing committee composed of ESIC members.
  • There is also a Medical Benefits Board, which advises the ESIC on medical benefit matters.
  • The ESIC supervises the scheme ESI (Employee State Insurance).
  • The services provided by the ESI scheme are compatible with the International Labour Organization. The money needed for this plan is collected from the employers and the staff.


Benefits of ESIC

Medical Benefit: An insured employee and his family members begin to receive total medical benefits from the day he/she starts an insurable job. The ESIC insurance is also applicable for insured retired persons and permanently disabled employees along with their spouse for a token premium amount of Rs. 120 which is paid annually.

Sickness Benefit: This ESIC benefit insures an amount which is 70% of the daily average wage earned by an employee to be dispensed to them during a medical leave for a maximum of 91 days in a year. To access this benefit, the employee needs to serve his employer for 78 days in a half-yearly contribution period.

Maternity Benefit: This benefit provides an insured 100% of the average wage for twenty-six weeks of maternity leave from the time of labour, and it can be further extended for a month.

Unemployment Allowance: This allowance comes under the Rajiv Gandhi Shramik Kalyan Yojana, which provides financial support to an insured person who has become unemployed due to circumstances like the shutting down of the company, permanent invalidity, retrenchment, etc. if he/she has worked an insurable job for three years. Under this benefit, the insured employee having an ESIC account will receive medical assistance from ESI hospitals or dispensaries, where the allowance equals 50% of wages for duration of up to two years.

Disablement Benefit: The disablement benefit covers financial support for both permanent as well as temporary disability of an insured employee. 90% of the wage earned is payable to the person if he suffers any disablement due to an occupational hazard; plus, the same amount is also applicable for the person's family or dependent in the form of Dependent's Benefit, in the event of the death of the insured employee.