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The Employees’ State Insurance Corporation (ESIC) administers the ESI scheme, a self-financing health insurance scheme for formal sector workers in India. It provides financial assistance to compensate for the loss of wages during a period of abstention from work due to sickness, maternity, and employment injury. The scheme also provides medical care to family members.
The statutory corporate body has members representing employers, employees, the Central Government, the State Government, the medical profession, and the Hon’ble Members of Parliament.
The scheme is primarily built out of contributions from employers and employees who contribute a fixed percentage of wages monthly. The State Governments bear one-eighth share of the cost of medical benefits.
Establishments or factories employing ten or more persons are eligible for this scheme.
For workers under the ESI scheme, a relief to the extent of twenty-five percent of the average per day earning during the previous four contribution period is paid up to a maximum of ninety days of unemployment once in a lifetime.
The Government relaxed the norms so that ESIC would give fifty percent of average wages for a maximum period of ninety days of unemployment till the calendar year-end, as compared to the previous twenty-five percent.
This allowance was stated to be payable to those who lost jobs between March 24 and December 31, 2020 due to the Covid-19 pandemic. Employees could claim payment for any three months (ninety days) between March 24, 2020 and December 31, 2020.
The scheme was also extended for one more year up to June 30, 2021. After December 31, 2020, the scheme was available with the original eligibility conditions between January 1, 2021 and June 30, 2021.
The workers should have insurable employment for a minimum of two years before their unemployment.
They should have contributed for at least seventy-eight days in the contribution period before their unemployment and a minimum of seventy-eight days in one of the remaining three contribution periods in the two years prior to their unemployment.
This relaxation on the unemployment allowance was stated to benefit around forty lakh employees.
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