ESI Act is applicable to factories using power and engaging 10 workmen and non power using factories and establishments employing 20 and more persons, Sec 2A of the ESI Act and Regulation 10B requires Employers to apply for Registration and obtain ESI Code Number for making necessary Compliance under ESI Act.

The aim of the Act is to establish Social and Economic justice to the poor Workmen and provides social insurance for which Government establish ESI Corporation, Standing Committee Medical benefit Council, Dispensaries and Hospitals.

Employees and Employer pay contribution to ESC every month and the Contributions are deposited into ESIC A/s every month by generatingechallan. Employer Contribution is 3.25% and Employees Contribution.75%

Employees are covered under ESI Act are given e-pechaan Card, Employee Insurance Number and they cover their family member depended parents for availing ESI Benefits. The ESI Scheme provides benefits, Sickness Benefits, Maternity Benefits, Disablement Benefits, Dependant Benefits, Medical Benefits, Funeral Expenses, Hospitalisation benefits etc. Employer should not dismiss, discharge or punish any employee who is on maternity benefit, Medical Treatment for Sickness, Disablement benefit. Any Accident of insured employee should be reported to ESIC immediately. For any contravention or offences Employer is punishable with imprisonment upto one year and fine, damages, interest. for belated payment of Contribution to ESIC etc.