Group Health Insurance glossary
ESIC — full form & meaning
ESIC stands for the Employees’ State Insurance Corporation, the government body that runs India’s statutory Employees’ State Insurance (ESI) scheme. It provides medical care and cash benefits to employees earning up to ₹21,000 a month, in establishments with 10 or more staff, funded by a 3.25% employer and 0.75% employee contribution on wages.
ESIC covers employees earning up to ₹21,000 a month, in establishments with 10 or more staff — funded by a 3.25% employer + 0.75% employee contribution.
What ESIC means
ESIC = Employees’ State Insurance Corporation. It is the statutory body set up under the ESI Act, 1948 — now folded into the Code on Social Security, 2020 — to administer the Employees’ State Insurance (ESI) scheme. ESI is a self-financing social-security programme: employers and employees each pay a small percentage of wages, and covered workers draw medical care plus cash benefits in return.
People often blur the two, but the distinction is simple: ESI is the scheme (the cover), and ESIC is the Corporation (the body that runs and funds it). Contributions are collected monthly, and benefits are delivered through ESIC dispensaries and empanelled hospitals.
Who ESIC covers — and what it costs
ESIC reaches employees earning a gross wage up to ₹21,000 a month (₹25,000 for a person with disability), in establishments with 10 or more employees — 20 in some states. Their dependents are covered too. It is funded by:
Employer share
Employee share
Total on wages
Employees above ₹21,000 a month are outside ESIC entirely — which is why employers add a group health insurance plan for the rest of the team. For the full walk-through, see the ESIC employer guide.
Frequently asked questions
What is the full form of ESIC?
ESIC stands for the Employees’ State Insurance Corporation — the statutory body that runs the Employees’ State Insurance (ESI) scheme in India under the ESI Act, 1948. It provides medical care and cash benefits to workers earning up to ₹21,000 a month and their dependents.
What is the difference between ESI and ESIC?
ESI is the scheme — Employees’ State Insurance, the actual social-security and health cover. ESIC is the Corporation — the government body that administers and funds that scheme. In everyday use the terms are often used interchangeably, but strictly, ESIC runs ESI.
Who is covered under ESIC?
Employees earning a gross wage up to ₹21,000 a month (₹25,000 for a person with disability) in an establishment with 10 or more employees — 20 in some states. Their dependents are covered too. Employees above the wage ceiling are outside ESIC.
What are the ESIC contribution rates?
The employer contributes 3.25% of wages and the employee 0.75% — a total of 4%, applicable since 1 July 2019. Contributions are due by the 15th of the following month, calculated on gross wages up to the ₹21,000 ceiling.
Does ESIC replace group health insurance?
No. ESIC only covers lower-wage staff through ESIC facilities. It leaves everyone above ₹21,000 a month with no statutory health cover, which is why most employers add a voluntary group health insurance plan for the rest of the team.
Related terms & guides
Cover the team above the ESIC line
Beyond the statutory minimum, give your team real cover with Onsurity. Get a group health quote and see the per-employee cost of extending cashless cover to everyone above ₹21,000 a month.
Get a group health quote