Employees Compensation Act

The Employees’ State Insurance (ESI) Act, 1948, is a landmark legislation in India aimed at providing comprehensive social security to workers in case of sickness, maternity, disability, or death due to employment-related injuries. Administered by the Employees' State Insurance Corporation (ESIC), the Act applies to establishments with 10 or more employees earning a wage of up to ₹21,000 per month. It mandates contributions from both employers and employees to create a fund that finances benefits such as medical care, cash compensation during illness, maternity leave, and rehabilitation. The Act ensures that workers and their dependents are safeguarded against financial distress arising from health risks or workplace hazards, thereby promoting their welfare and security. By fostering a safety net for employees, the ESI Act plays a pivotal role in strengthening India's labor welfare system.