Benefits & Savings Guide

Everything you need to know about ESI, PF, GST, and Income Tax benefits.

ESI — Employee State Insurance Scheme

Administered by ESIC (Employees' State Insurance Corporation), this scheme provides comprehensive social security and health insurance coverage to employees earning up to ₹21,000/month (₹25,000 for persons with disability). Employers contribute 3.25% and employees contribute 0.75% of gross wages.

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Types of ESI Benefits Available

Medical Benefit

Full medical care from day one of insurance for the insured person and their entire family — including outpatient, inpatient, specialist, surgery, medicines and diagnostic tests at ESIC hospitals and dispensaries.

Insured Person + Family

Sickness Benefit

Cash payment at 70% of average daily wages for up to 91 days per year during medically certified sickness. Requires a minimum of 78 days contribution in the preceding two contribution periods.

70% of Wages · 91 Days/Year

Maternity Benefit

Full wages (100%) for 26 weeks for confinement/delivery, 6 weeks for miscarriage, and 12 weeks for adoption of a child below 3 months. Requires 70 days contribution in preceding two periods.

100% Wages · 26 Weeks

Disablement Benefit

Temporary Disablement: 90% of wages as long as disability continues. Permanent Disablement: Monthly pension based on degree of disablement assessed by a medical board, payable for life.

Temp: 90% Wages · Perm: Life Pension

Dependants' Benefit

Monthly pension payable to dependants (spouse, children, parents) if an insured employee dies due to an employment injury or occupational disease. Equivalent to 90% of the daily wage distributed among eligible dependants.

90% of Wages to Family

Extended Sickness Benefit

For certain long-term diseases (like TB, cancer, psychiatric disorders — 34 listed diseases), the sickness benefit is extended for up to 2 years at 80% of wages. Requires 2 years of insurable employment.

80% Wages · Up to 2 Years

Enhanced Sickness Benefit

For insured persons undergoing family planning sterilisation operations — full wages (100%) for 14 days for males and 21 days for females (tubectomy).

100% Wages · 14–21 Days

Funeral Expenses

A lump-sum amount of ₹15,000 is paid to the eldest surviving member of the family or the person who actually incurred the funeral expenses when an insured person passes away.

₹15,000 Lump Sum

Rehabilitation Allowance

Provided to permanently disabled insured persons to help them undergo vocational rehabilitation at government-run rehabilitation centres. A daily allowance equal to the temporary disablement rate is paid during the rehabilitation period.

Vocational Rehabilitation Support

ESI Contribution Rates

ContributorRate of ContributionBasisApplicability
Employer3.25% of gross wagesMonthly gross salaryAll covered employees
Employee0.75% of gross wagesMonthly gross salaryEmployees earning > ₹176/day
Employee (wage ≤ ₹176/day)NILExempt from employee contribution
State Government1/8th of total expenditure on medical benefitMedical benefit costAs per ESIC Act

Who Is Eligible for ESI Coverage?

Salary Limit

Employees earning up to ₹21,000/month (₹25,000 for persons with disability)

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Covered Establishments

Factories, shops, hotels, restaurants, cinemas, road transport, educational/medical institutions with 10+ employees

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Contribution Period

April 1 to September 30 (Period I) and October 1 to March 31 (Period II). Benefits payable in corresponding benefit periods.

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Family Coverage

Medical benefit extends to spouse, dependent children below 25 years, and dependent parents living with the insured person

How to Claim ESI Benefits

1

Get IP Number

Your employer registers you on the ESIC portal and you receive an Insurance Number (IP Number)

2

ESIC Card

Download your ESI card from esic.in using your IP number and Aadhaar

3

Visit ESIC Facility

Attend designated ESIC dispensary or empanelled hospital with your ESI card

4

Submit Claim

For cash benefits, submit the claim form with medical certificate to the ESIC branch office

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