Why employer should cover employees under ESIC ?

The Employee's State Insurance Corporation (ESIC) is a social security scheme implemented by the Indian government to provide health insurance coverage to employees and their families. Here are some reasons why employers should cover employees under ESIC in India:

1.    Legal requirement: Under the Employee's State Insurance Act, 1948, it is mandatory for employers with more than 10 employees to register with ESIC and provide health insurance coverage to their employees.
2.    Cost-effective: ESIC provides comprehensive health insurance coverage to employees and their families at a nominal cost. The employer needs to contribute only 4.0% of the employee's salary towards the ESIC scheme, while the employee contributes 1.75% of their salary. This makes it an affordable option for both employers and employees.
3.    Comprehensive coverage: ESIC provides a range of medical benefits, including medical consultations, hospitalization, maternity benefits, disability benefits, and more. Employees can avail of these benefits without any additional cost, which can help them save a significant amount of money in case of medical emergencies.
4.    Employee welfare: Providing ESIC coverage to employees can help boost their morale and job satisfaction, as it shows that the employer cares for their well-being. It can also help attract and retain quality employees, which can be beneficial for the organization in the long run.
5.    Compliance with labor laws: By providing ESIC coverage to employees, employers can ensure that they are compliant with labor laws and regulations in India. This can help avoid legal issues and penalties that may arise due to non-compliance.
Overall, covering employees under ESIC can provide several benefits to both employers and employees, including cost-effective and comprehensive health insurance coverage, improved employee morale and job satisfaction, and compliance with labor laws.