What is the full form of ESI and its benefits

ESI: Employee State Insurance

The full form of ESI is Employee State Insurance, which is a self-financing social security and health insurance scheme for Indian workers.

All the funds of ESI are managed by Employee State Insurance Corporation (ESIC) under the rules and regulations of ESI act 1948.

This ESI scheme comes under the Ministry of Labor and Employment, Government of India and ESIC is an autonomous corporation.

ESIC full form


  • The proportion of funds deduction under ESI is, an employer contributes 3.25%  and the employee contributes 0.75%, so the total share is 4% for all employees earning Rs.21000/- INR or less.
  • All the employees registered under this scheme are entitled to medical facilities for themselves and their dependents.


The ESI Scheme was initiated by Dr Bhim Rao Ambedkar who prepare a report in 1943, which was finalized on the basis of that report in 1948 under the ESI act.

The scheme was first implemented at Kanpur and Delhi in 1952. This Act further absolved the employers of their obligations under the Maternity Benefit Act, 1961 and Workmen’s Compensation Act 1923.

The benefits provided to the employees under the Act are also in conformity with ILO conventions.

Hope you enjoyed reading the information in the article Full Form Of ESI.

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