The 6 ESI Benefits, Explained

ESI isn't just a payroll deduction — it's the six benefits it actually buys you. Here's what each one covers, sourced directly to the Code, and one cross-reference most explainers skip: what happens to your maternity benefit if you're ESI-covered.

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The short answer

Section 32 of the Code lists six ESI benefits: sickness, maternity, disablement, dependants', medical, and funeral expenses. The structure of each is in the Code; the exact rate and duration of each is set by Central Government regulation, not stated in the bare Act text.

The six benefits, as Section 32 defines them

Sickness benefit — periodical payments during certified sickness.
Maternity benefit — periodical payments for confinement, miscarriage, or sickness arising from pregnancy, confinement, premature birth, or miscarriage.
Disablement benefit — periodical payments for disablement resulting from an employment injury.
Dependants' benefit — periodical payments to dependants if an Insured Person dies from an employment injury.
Medical benefit — treatment and attendance for the Insured Person, extendable to family.
Funeral expenses — a payment toward funeral costs, capped at an amount the Central Government notifies. Multiple independent sources report this figure at ₹15,000, in effect since March 2019 and carried forward unchanged — a figure we could corroborate but not fetch from a primary notification directly.

Rates, qualifying conditions, and durations for sickness, maternity, disablement, and dependants' benefit are all delegated: Section 32(3) states plainly that "the qualification of a person to claim sickness benefit, maternity benefit, disablement benefit and dependants' benefit and the conditions subject to which such benefit may be given and the rate and period thereof, shall be such as may be prescribed by the Central Government." We're not going to assert specific percentages here that we can't trace to that regulation text directly — if you've seen a figure like "70% of average daily wages" for sickness benefit elsewhere, treat it as a widely-reported convention, not something we've independently confirmed for this article.

If you're ESI-covered, your maternity benefit comes through ESI — not your employer directly

This is the cross-reference worth knowing if you're pregnant and ESI-covered. Section 41(7)(b) is explicit:

"Any women employee eligible for availing maternity benefit under this Chapter shall not be entitled to claim maternity benefit from her employer under Chapter VI."

Chapter VI is the separate Maternity Benefit framework (the 26-week paid leave, the employer-paid medical bonus, and so on) that applies to employees generally. If you qualify for ESI's own maternity benefit, that's the channel — not a parallel claim against your employer. The ₹3,500 medical bonus specifically (Section 64) is a Chapter VI, employer-paid benefit for women who don't get medical benefit through ESI — it isn't something ESI-covered employees additionally receive.

Tax treatment of ESI contributions — flagged, not asserted

We looked for a confirmed answer on how ESI contributions are taxed and didn't reach one we trust enough to state as fact. What we can say with confidence: your own 0.75% ESI contribution is deducted from gross wages before your take-home is calculated, the same mechanical way PF's employee contribution is — it isn't added back to your taxable salary as a benefit-in-kind. Beyond that mechanical point, we found sources describing specific exemption thresholds for the combined employer contribution across PF, ESI, and similar funds, but couldn't verify those figures apply to ESI specifically rather than just PF and superannuation. If the exact tax treatment matters for your filing, confirm with a tax professional rather than relying on this page for it.

For who qualifies for ESI at all, see who ESI applies to, and for how your own wage figure is calculated, see the ESI wage ceiling explained.

FAQ

Sickness benefit, maternity benefit, disablement benefit, dependants' benefit, medical benefit, and funeral expenses — all listed in Section 32 of the Code on Social Security, 2020.

No. Section 41(7)(b) specifically bars ESI-covered women from also claiming maternity benefit from their employer under the separate Chapter VI framework — ESI is the channel, not an addition to it.

That's a Chapter VI, employer-paid benefit (Section 64) specifically for women who do NOT receive medical benefit through ESI — not something ESI-covered employees additionally receive.

Multiple independent sources report ₹15,000, in effect since March 2019 and carried forward. The Code itself delegates the exact figure to Central Government notification (Section 32(1)(f) proviso) rather than stating it directly.

We're not asserting a specific answer here — sources are inconsistent and some appear to conflate ESI with an unrelated PF/superannuation exemption threshold. What's mechanically clear: your own ESI contribution is deducted from gross wages before take-home is calculated, the same way PF's employee share is. Confirm anything beyond that with a tax professional.

Last verified: 20 Aug 2026

Sources: Code on Social Security, 2020, Section 32 (benefits), Section 41(7) (maternity-benefit exclusivity), Section 64 (Chapter VI medical bonus), read directly for this article. The ₹15,000 funeral-expense figure is corroborated across independent sources (including ESIC-affiliated pages) but not fetched from a primary notification.

This is general information, not tax or compliance advice. Rates and durations for individual ESI benefits are set by regulation and can change — confirm your own entitlement with ESIC or a qualified professional before relying on this for financial decisions.