GMC vs ESIC — which one is mandatory?
ESIC is the mandatory one. Employees’ State Insurance is a statutory scheme an employer must provide for eligible employees — broadly, staff earning up to ₹21,000 a month in covered establishments. Group Mediclaim (GMC) is voluntary: a private group health policy an employer chooses to offer, often on top of ESIC to cover higher earners, founders and wider hospital access.
Last updated 09-Jul-2026 · Onsurity Answers
ESIC is the mandatory one. Employees’ State Insurance is a statutory scheme an employer must provide for eligible employees — broadly, staff earning up to ₹21,000 a month in covered establishments. Group Mediclaim (GMC) is voluntary: a private group health policy an employer chooses to offer, often on top of ESIC to cover higher earners, founders and wider hospital access.
ESIC vs GMC at a glance
One is a statutory scheme run by the government; the other is a private benefit you choose. They cover different people in different places.
| Feature | ESIC (statutory) | GMC with Onsurity (voluntary) |
|---|---|---|
| Mandatory? | Yes — statutory under the ESI Act | No — voluntary employer benefit |
| Who is covered | Employees earning up to ₹21,000/month | Anyone the employer chooses — all staff, founders, dependents |
| When it applies | Establishments with 10+ (or 20+) employees in notified areas | Teams from 2 employees with Onsurity |
| Where you can be treated | ESIC-empanelled hospitals and dispensaries | 10,000+ cashless network hospitals with Onsurity |
| Contribution / cost | Fixed % of wages (employer + employee) | Premium set by cover and team profile |
| Above-threshold staff | Not covered by ESIC | Fully covered under GMC |
How the two fit together
ESIC is the floor the law sets; GMC is how most employers cover the rest.
ESIC is the law
The Employees’ State Insurance scheme is a statutory obligation. Where it applies, eligible employees must be enrolled and contributions deducted and deposited. It is administered by ESIC, not by a private insurer.
GMC is the choice
Group Mediclaim is a private group health policy an employer buys voluntarily. There is no legal compulsion to have it, but most companies offer it to attract and retain staff and to cover people ESIC leaves out.
They often work together
Because ESIC only covers employees up to the ₹21,000 wage threshold and only at ESIC facilities, employers frequently add GMC on top — so senior staff, founders and everyone wanting wider hospital access are also covered.
Onsurity covers the GMC side
Onsurity provides the voluntary group health cover: cashless treatment at 10,000+ hospitals, cover from 2 employees, no medical check-up to start, on a flexible monthly membership.
Frequently asked questions
Is ESIC compulsory for every company?
ESIC applies to covered establishments — typically those with 10 or more employees (20 in some states) in notified areas — and covers employees earning up to ₹21,000 a month. Where those conditions are met, enrolling eligible employees and paying contributions is mandatory.
Is Group Mediclaim (GMC) mandatory?
No. GMC is a voluntary group health insurance policy an employer chooses to provide. There is no statute requiring it, though many companies treat it as an essential benefit and to cover staff who fall outside ESIC.
If we already deduct ESIC, do we still need GMC?
Often yes. ESIC only covers employees under the wage threshold and only at ESIC-empanelled facilities. Higher-earning staff, founders and anyone wanting cashless treatment at a wider hospital network are not covered by ESIC, which is where a GMC plan fills the gap.
Can an employee be covered by both ESIC and GMC?
Yes. An eligible employee can be enrolled in ESIC as required by law and also be covered under the company’s voluntary GMC plan, giving them the statutory scheme plus wider private cover.
Who decides the ₹21,000 ESIC threshold?
The wage ceiling for ESIC eligibility is set by the government under the ESI Act and is revised from time to time. Employees earning above the prevailing ceiling are outside ESIC, so employers commonly cover them through GMC.
Keep reading
Whether ESIC alone is enough for your team.
What the law actually requires of private companies.
Medical, accident and term-life group cover compared.
A tailored group health quote for your team.
Cover the staff ESIC leaves out
Onsurity’s voluntary group health cover starts from 2 employees — cashless at 10,000+ hospitals, no medical check-up, on a flexible monthly membership.
Get a group health quote