ESIC or Employee State Insurance Corporation is a corporate body set up to administer the functioning of ESI Act, 1948. ESI Scheme protects the employees from situations of distress and provides those cash and other benefits in the form of medical benefits, maternity benefits, disability benefits, sickness benefits, etc.
ESI is applicable to all factories and establishments provided that such an establishment employs 10 or more persons. Maharashtra and Chandigarh require a minimum of 20 employees in an establishment. Apart from the factories; Shops, Hotels and Restaurants involved only in sales, Cinemas, Road Motor Transport Establishments, Newspaper establishments and Private Educational Institutions are also covered under the scheme.
Another criterion for the applicability is that the monthly wage of the employee must not exceed Rs.21000/-. A person engaged on a contractual basis, a contractor, a partner and an apprentice are not covered under the scheme.