Employee's State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. For all the employees earning INR 15000 or less per month as wages, the employer contributes 4.75 percentages and employee contributes 1.75 percentages and the total share comes to 6.5 percentage.
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This fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein by the ESI Act 1948, which oversees the provisions of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India.
ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India. But most of the dispensaries and hospitals are run by concerned state governments. Employees registered under the ESI enjoy a range of benefits under the scheme. They enjoy medical attendance and treatment for the person insured and their families including full range of medical, surgical and obstetric treatment, supply of all drugs, ambulance services, super-specialty consultation, etc., In addition, to the medical care, insured persons also get the benefit of sick pay benefits. Registration with ESI provides the employee with tremendous benefits and improves worker morale and retention.
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