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All about Employee State Insurance (ESI Scheme)

Employee State Insurance Scheme (ESIS): What is it and how does it affect you?

An overview of the Employee State Insurance Act


The Parliament of India introduced the Employees State Insurance Act in 1948 and first launched it in 1952 in Delhi and Kanpur, covering approximately 1.20 lakh employees. After this initial implementation, the state governments took up this initiative to include more parts of the country in several phases. 

This act defines several terms and conditions related to the scheme’s validity, including insured employees’ eligibility and duties and responsibilities of the Employees’ State Insurance Corporation (ESIC). 


It also specifies certain requirements for a family member to become a dependent of the insured individual under the ESI scheme. According to this Act, eligible dependents include:

1. Any parent, including a widowed mother.

2. Sons and daughters, including any adopted or illegitimate offspring.

3. A widowed or unmarried sister.

4. A minor brother.

5. A paternal grandparent in case his/her parents are dead.

6. A widowed daughter-in-law.

7. A minor offspring of a predeceased son or a predeceased daughter provided no parent of the child is alive in the latter case.

The Employees State Insurance Act 1948 also specifies 2 contribution periods and 2 cash benefit periods which are marked as follows:



Contribution periods

1st April-30th September, 1st October-31st March

Cash benefit periods

1st January-31st June, 1st July-31st December

Depending on an employee’s contributory days during a contribution period, they can avail of compensation in the succeeding cash benefit period accordingly.

What are the features of ESIC (Employee State Insurance Scheme)

What are the benefits of ESIC?

How to register for ESIC?

What are the documents required for ESIC registration?

About the Employee State Insurance card or Pehchan card

Frequently Asked Questions