India's contributory health insurance and social security scheme for lower-paid employees.
Employees' State Insurance (ESI) is India's contributory social security scheme, established by the Employees' State Insurance Act, 1948 and administered by the Employees' State Insurance Corporation. Employer and employee each contribute a percentage of wages, and covered employees and their dependants receive medical care together with cash benefits including sickness, maternity, disablement and dependants' benefit. Unlike the provident fund it is insurance rather than savings: contributions buy cover for a contribution period, and an employee who never claims does not accumulate a balance. Contribution rates and the wage ceiling for coverage are set by rule and revised from time to time — confirm the current figures with ESIC before configuring payroll.
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