What is ESI (Employees' State Insurance)?
ESI, Employees' State Insurance, is an Indian social security scheme run by ESIC. It gives covered employees medical care and cash benefits for sickness, maternity, disablement and dependants. Both the employer and the employee pay contributions. Under the Code on Social Security, 2020 it applies to establishments with ten or more persons, and to notified hazardous work even with one.
Example
A company with 25 employees registers with ESIC. An insured employee who falls sick can claim sickness benefit, and medical care for the family is provided through ESIC facilities. Coverage depends on the wage limit: the Ministry's FAQ says the Rs 21,000 a month wage notified for ESI coverage continues for now.
Why it matters
ESI is separate from PF. Check your payslip for both, and see PF and ESI coverage under the Labour Codes.
Related terms and guides
Sources
- Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes, https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf, live official page, linked for readers; link checked 2026-10-31
- Ministry of Labour and Employment, Additional FAQs on Labour Codes (as on 16 Mar 2026), https://www.labour.gov.in/static/uploads/2026/03/a4ccf4c6d97c4f1f36a6d83f8c64213d.pdf, live official page, linked for readers; link checked 2026-10-31
- ESIC (Employees' State Insurance Corporation), https://www.esic.gov.in, official site, linked for readers; not reachable from our automated check
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.