Employee State Insurance, or ESI, is administered by the Employee State Insurance Corporation, an independent body established by law under the Ministry of Labour and Employment of the Government of India. This programme is aimed at Indian jobs. The employer provides a wide range of medical, financial, and other benefits to the employees. Any non-seasonal factory or business with more than 10 employees (in some states, it's 20) and a maximum salary of Rs. 21,000/- is needed to register with the ESIC.

The employer is required to contribute 3.25 percent of the overall monthly compensation payable to the employee in this arrangement, while the employee is only required to contribute 0.75 percent of his monthly salary per month of the year. Only employees earning less than Rs. 176/- per day are excluded from paying their contribution.

As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:

1. Shops

2. Restaurants or Hotels only engaged in sales.

3. Cinemas

4. Road Motor Transport Establishments;

5. Newspaper establishments (which is not covered under the factory act)

6. Private Educational Institutions

The advantages of signing up for this programme are numerous. Here are a few examples:

1. Sickness compensation of 70% (in the form of salary) in the event of any certified illness lasting for a maximum of 91 days in any year.

2. Medical Insurance for an employee and his family

3. Maternity Benefits for Expectant Mothers (paid leaves)

4. If an employee dies while on the job, 90 percent of his or her salary is paid to his or her dependents in the form of a monthly payout after the employee's death.

5. Same as above in the event of an employee's impairment.

6. Costs of a funeral

7. Medical costs for the elderly