There is a lot of confusion and a lot of misconception in the minds of the people regarding ESIC. Today with the help of this blog we are going to clear all your doubts and misconceptions about ESI. If you still have any doubts or misconceptions feel free to drop a comment down below.

Here are some of the top 5 misconceptions that people usually have about ESI.

  1. It is mandatory to get registered under the ESI scheme: If your monthly salary is less than INR 21000 and your organization has more than 10 employees, then you need to get registered under the ESI scheme and are eligible to enjoy the benefit. On the contrary, if your starting monthly salary is greater than INR 21000, you are not eligible to register for ESI. This was a common doubt that we have been asked about over the years by employer and employees.
  1. We can withdraw this amount just like PF: This is another misconception in the minds of the employees that they can withdraw their ESI contribution just like PF. An important thing to note is that you do not get any interest on ESI contribution as in PF because ESIC is a benefit but PF is a type of savings.
  1. There aren’t many benefits of the ESI act: The ESI act has a lot of benefits ranging from paid sick leave, compensation for loss of a working body part, maternity leave, and death benefits, etc. Thus it would be wrong to assume and think that there are only a few benefits of the ESI act.
  1. The coverage/ scope of this act is very little- Another very wrong misconception that people have is that the scope/ coverage of this act is very limited. We want you to remove this misconception from your minds. The ESI act covers all the medical expenses, be it consultation charges of a doctor, treatment, or medicine, etc. You would be surprised to know that your immediate family including your dependent parents, dependent kids, dependent sibling & spouse, are also covered under this scheme apart from yourself.
  1. Do I need to pay the full ESI amount: People perceive that they need to pay the full amount of ESI but this is not the case, the ESI contribution is 4% of which the employee pays only a sum of 0.75% and the employer pay a sum of 3.25%, thus here also the employer will contribute a major sum.

These were some of the misconceptions that people had over ESI, we hope this was a helpful article. Keep following for more articles clearing your doubts. We would like to clear any other misconceptions you might have, so please comment on any other misconceptions that you have or any doubt that you had heard from someone else.

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