Employee's State Insurance (ESI) is an organisation which comes under Ministry of Labour and Employment, Government of India. This has been formed for the employee benefit which provides social security and health insurance scheme to all the working employees in India. Through ESI, Government provides full medical insurance to the registered employee under this scheme. It offers financial aid to reimburse for the loss caused of his/her salary due to any medical health issue such as sickness, maternity and injury in employment. By this scheme, government provides medical assistance to his/her family members of employees also. Registration of ESI is compulsory for those who are earning less than 21,000/- per month and have a formation of compan6y with 10 or more employees.
The company must register itself under ESI scheme within 15 days from the date of incorporation of company. In case, a company does not comply with the rules and regulation of the company and fails to register itself under scheme, then he is liable to penalty of Rs. 10,000/-. The establishment which are mandatory for registration of ESI are Shops, hotels, newspaper establishments, and private educational establishments. ESI provides benefits to the employees such as monthly salary to his/her family member after his death or disability and old age care expenses and many more.