Employees’ State Insurance (abbreviated as ESI) is a self-financing social security and health insurance scheme for Indian workers. This fund is managed by the Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act 1948. ESIC is an autonomous corporation by a statutory creation under Ministry of Labour and Employment, Government of India.
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 came into effect on 4th March 1952. Six industries namely Cigarettes, Electrical, mechanical or general engineering products, Iron and Steel, Paper and Textiles (made wholly or in part of cotton, wool or jute or silk, whether natural or artificial) came under implementation of the Act wef 01.11.1952 The organization is administered by a Central Board of Trustees, composed of representatives of the Government of India, State governments, Employers and Employees. The board is chaired by the Union Labor Minister of India. The Chief Executive of the EPFO, the Central Provident Fund Commissioner, reports to the Union Labor Minister through the Secretary of Labor and Employment in the ministry. The headquarters of the organization is in New Delhi.
The Constitution of India under “Directive Principles of State Policy” provides that the State shall within the limits of its economic capacity make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved want. The EPF & MP Act, 1952 was enacted by the Parliament of India and came into force with effect from 4 March 1952 as part of a series of legislative interventions made in this direction. Presently, the following three schemes are in operation under the Act:
> Employees’ Provident Fund Scheme, 1952
> Employees’ Deposit Linked Insurance Scheme, 1976
> Employees’ Pension Scheme, 1995 (replacing the Employees’ Family Pension Scheme, 1971)