ESIC Benefits

1. The Employee State Insurance Corporation (ESIC) is a statutory body under the
Ministry of Labour and Employment in India. It provides social security and health
insurance benefits to employees working in various organizations across the country.
Here’s a detailed list of the benefits provided by ESIC:
1. Medical Benefits
 Comprehensive Medical Care: Employees and their dependents (spouse, children, and
parents) are entitled to free medical care through ESIC hospitals and dispensaries.
 Maternity Benefits: Female employees are entitled to paid maternity leave (26 weeks) and
medical benefits for the duration of the pregnancy, childbirth, and post-natal care.
 Surgical Benefits: ESIC provides medical care for surgeries and treatments in its network of
hospitals, including specialized care in case of accidents or diseases.
 Prescription Medicines: ESIC covers the cost of prescription medicines for employees and
their family members.
2. Cash Benefits
 Sickness Benefit: Employees who are unable to work due to sickness are entitled to cash
benefits equivalent to 70% of their wages, paid for up to 91 days in two consecutive benefit
periods.
 Maternity Benefit: Female employees receive cash benefits during maternity leave at the
rate of 100% of their average daily wages for 26 weeks.
 Disablement Benefit: In case of temporary or permanent disability due to an accident or
work-related illness, employees receive compensation. This is calculated based on the extent
of disability.
 Dependents’ Benefit: If an insured employee passes away due to employment-related injury
or illness, the dependents are entitled to a monthly pension.
 Funeral Expenses: The family members of a deceased insured employee are provided with
funeral expenses of up to ₹10,000.
3. Pension Benefits
 Permanent Disablement Benefit: Employees who suffer permanent disablement due to a
work-related injury are entitled to a monthly pension, which varies depending on the
severity of the injury and the percentage of disability.
 Survivor Benefits: If an insured person dies due to an accident at work, the family (survivors)
are entitled to monthly pension benefits to provide financial support.
 Retirement Benefit: Employees who are no longer covered under ESIC due to reaching
retirement age (if they are no longer working in insurable employment) may qualify for an
old-age pension, provided they have contributed for a specified period.
4. Family Benefits
 Family Members Coverage: ESIC extends its medical, cash, and pension benefits to the
family members of the insured person (spouse, children, and dependent parents).
 Funeral Expenses for Family Members: The insured employee’s family is entitled to funeral
expenses upon the death of the employee.
5. Rehabilitation Benefits
 Vocational Rehabilitation: If an insured person becomes permanently disabled, they may be
eligible for vocational rehabilitation, which includes retraining for a new job to help them
integrate back into the workforce.
 Physical Rehabilitation: This covers treatment for employees suffering from long-term
injuries, helping them regain functional capacity.

2. 6. Unemployment Benefits
 Employment Support Scheme: If an employee becomes unemployed, under certain
conditions, they may be entitled to unemployment benefits. ESIC offers various schemes like
the Atal Beemit Vyakti Kalyan Yojana to provide a financial cushion during periods of
unemployment.
7. Funeral Expenses
 For the Insured Employee: Upon the death of an insured employee, their family is provided
with funeral benefits.
 For the Family Member: Funeral expenses are also provided in case the family member (such
as the spouse or children) of the insured employee dies.
8. Preventive Healthcare
 Health Awareness Campaigns: ESIC conducts various awareness campaigns related to
workplace health, hygiene, and safety to prevent injuries and illnesses among workers.
 Vaccination and Health Screenings: Periodic health screenings and vaccination programs are
also provided to workers to reduce the risk of preventable diseases.
9. Rehabilitation and Counseling
 ESIC offers programs for the rehabilitation of the disabled workers and psychological
counseling in case of traumatic injuries or life-changing events.
10. Other Benefits
 Accident Benefits: Employees who suffer an accident at work can avail of compensation for
medical treatment, rehabilitation, and disability.
 Special Benefits: In case of an epidemic or disaster, ESIC may extend special medical or cash
benefits to the affected employees.
11. COVID Relief Scheme of ESIC
In response to the COVID-19 pandemic, the Employee State Insurance
Corporation (ESIC) introduced several relief measures to support workers during the
crisis. These measures aimed to provide financial and medical assistance to
employees who were affected by the pandemic.
Key Features of the COVID Relief Scheme:

Medical Benefits:

o Treatment for COVID-19: ESIC hospitals and dispensaries provided free treatment
for COVID-19 to all insured persons and their dependents.
o Testing and Vaccination: ESIC extended support by offering free testing and
vaccination for insured employees. This helped ensure that workers could access
health services without worrying about the financial burden.

Increased Cash Benefits:


3. o Sickness Benefit Extension: Employees who were unable to work due to contracting
COVID-19 could claim sickness benefits under the ESIC scheme. These benefits were
paid at the rate of 70% of the average daily wages.
o Maternity Benefit: Female employees infected with COVID-19 or facing difficulties
due to the pandemic were still able to claim their maternity benefits, which were
paid for the entire duration of the maternity leave.

Special Relief for Families:

o Death Benefits: If an employee lost their life due to COVID-19, their family was
entitled to dependents' benefits, which provided a monthly pension to the family
members, ensuring financial stability after the worker’s demise.
o Funeral Expenses: The family members of the deceased were entitled to funeral
expenses of up to ₹10,000 under the ESIC scheme.

Increased Coverage for Workers:

o During the pandemic, ESIC extended its coverage to more workers in sectors that
were hard-hit by COVID-19. This was done to ensure that the workers who were
part of the informal economy or other vulnerable sectors had access to the benefits
of the ESIC.

Enhanced Medical Facilities:

o ESIC ensured that the hospitals and clinics under its network were equipped to
handle the surge in COVID-19 cases. This included the establishment of COVID care
centers and the allocation of resources for treating coronavirus patients.
Objective of the COVID Relief Scheme:
 The scheme aimed to support workers who were impacted directly or indirectly by the
COVID-19 pandemic by providing medical care and financial relief.
 The ESIC ensured that its insured employees and their families were well-catered to during
these challenging times by providing them with access to healthcare and income
replacement benefits.
12. Atal Beemit Vyakti Kalyan Yojana (ABVKY)
Atal Beemit Vyakti Kalyan Yojana (ABVKY) is a welfare scheme introduced by
the Employee State Insurance Corporation (ESIC) to provide financial assistance
to workers who become unemployed. The scheme aims to provide support to insured
persons who lose their jobs due to various reasons and find themselves without
income. The program helps them during their period of unemployment by providing
unemployment benefits in the form of cash relief.
Key Features of the Scheme:

Eligibility:


4. o Employees who have been covered under ESIC and are registered with the scheme
for a certain period.
o Employees who have contributed for at least 2 years (i.e., 24 months) in the ESIC
system and are currently unemployed are eligible to apply.
o The employee must have lost their job involuntarily (due to retrenchment, closure
of the establishment, or any other similar reasons).

Benefit Duration:

o The financial assistance (relief) under the scheme is provided for up to 3 months.
o The payment is made directly to the bank account of the eligible person.

Amount of Relief:

o The cash relief is typically 50% of the average daily wage of the employee during the
last 4 contributions months preceding the unemployment. It is paid in monthly
installments.
o The maximum relief can be drawn for up to 90 days.

Application Process:

o Unemployed insured persons need to apply for benefits through their ESIC website
or the concerned local ESIC office.
o They must also fulfill all the necessary conditions like providing proof of
unemployment and the reason for job loss.

Objective of the Scheme:

o The primary objective is to provide temporary financial support to the workers
during the period of unemployment until they find new employment.
o It reduces the economic strain on employees who lose their job involuntarily.
Important Notes:
 The scheme is aimed at alleviating distress for workers in the organized sector, especially
when they face unemployment due to reasons beyond their control.
 The scheme can be applied for once in a lifetime, which helps workers who are going through
sudden job loss and need time to adjust to new circumstances.
11.
Who is Eligible for ESIC Benefits?
 Employees in factories and establishments: Employees working in factories and
establishments where the number of employees is 10 or more and earning a wage of
₹21,000 or less per month (₹25,000 for disabled persons).
 Voluntary Coverage: Certain workers, even if not mandatorily covered by ESIC, can opt for
voluntary registration if they fall within the eligibility criteria.

5. ESIC thus provides a wide range of benefits aimed at ensuring the welfare of workers
in terms of health, income, and family support. The comprehensive coverage makes it
a critical aspect of the social security network in India.