Is Medical Insurance Mandatory for Employees in India?

A frequently asked question by employers is, "Is medical insurance mandatory for employees in India?" The answer is yes, especially for organizations operating in the formal sector. As per government regulations, including the Employee State Insurance (ESI) Act, 1948, and post-COVID-19 directives from the Ministry of Home Affairs (MHA), providing health insurance to employees is now a requirement.

Legal Requirements for Employee Health Insurance

1. ESI Scheme – Companies with 10 or more employees (or 20 in some states) must provide ESI coverage to employees earning up to ₹21,000 per month.
   
   

2. Group Health Insurance – The MHA mandated that all employers must offer medical insurance post-pandemic.
   
   

3. Corporate Compliance & Employee Benefits – Providing health insurance ensures legal compliance and financial security for employees.
   
   

So, if you’re wondering, "Is medical insurance mandatory for employees in India?", the answer is yes—employers must provide health coverage to protect their workforce.