Employees’ State Insurance Scheme (ESI Scheme), About, Objectives, Coverage and Beneficiaries
Employees’ State Insurance Scheme: ESI Scheme is an integrated measure of Social Insurance provided to the working class of India. Employees’ State Insurance Scheme is important for UPSC Prelims 2023 and UPSC Mains Exam (GS Paper 2- Government welfare schemes for various sections of people, especially the vulnerable sections of the population).
In March 2023, the provisional payroll data of ESIC revealed a significant increase in employment with the addition of 17.31 lakh new employees. This growth was accompanied by the registration of approximately 19,000 new establishments, which now fall under the social security coverage of the Employees’ State Insurance Corporation.
The Employees’ State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees’ State Insurance Act 1948.
The ESI Scheme applies to factories and other establishment’s viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein 10 or more persons are employed. However, in some states, the threshold limit for coverage of establishments is still 20 employees.
The Employees’ State Insurance Scheme (ESI Scheme) is financed by contributions from employers and employees.
In the beginning, the ESI Scheme was implemented at just two industrial centers in the country in 1952, namely Kanpur and Delhi.
Health Insurance for India’s Missing Middle
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The Employees' State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees' State Insurance Act 1948.
ESI Scheme is designed to accomplish the task of protecting 'employees' as defined in the Employees' State Insurance Act, 1948 against the impact of incidences of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families.
As of now, the total beneficiary under Employees’ State Insurance Scheme stands at over 8.28 crores.
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