ESIC Surplus Shrinks as Benefit Costs Surge
What Happened
Actuarial projections presented to the Employees’ State Insurance Corporation (ESIC) show that benefit spending will outpace contribution income over the next four years. The surplus of ₹404 crore in FY2024‑25 is expected to turn into a deficit of ₹1,072 crore in FY2025‑26, widening to ₹7,686 crore by FY2028‑29. Contribution income is projected to grow at 6% annually, but benefit expenditure is rising much faster — especially in medical care (15% annually), maternity benefits (25%), and dependants’ benefits (17.25%).
Key Takeaways
The projections highlight a looming financial strain for ESIC. While contributions from employers and workers will continue to rise, medical care and social benefits are expanding at a much faster pace, eroding the surplus. Unless reforms or additional funding are introduced, ESIC could face sustained deficits, impacting its ability to provide healthcare and cash benefits to millions of insured workers and their families.