Employee Perceptions of the ESI Scheme: A Critical Review of the Literature

Abstract

Purpose of Study: The study aims to critically evaluate employee perceptions of the Employees' State Insurance (ESI) Scheme in India, with a focus on how awareness, satisfaction, and perceived service quality influence the scheme’s effectiveness. Recognizing the policy-practice gap, the paper explores how subjective employee experiences shape utilisation patterns and engagement with social insurance programs.

Methodology: The article adopts a systematic literature review approach, selecting peer-reviewed and empirical studies focused on ESI awareness, accessibility, and employee satisfaction across Indian states. The study applies thematic analysis informed by Social Exchange Theory and the Theory of Reasoned Action to synthesise key trends, challenges, and policy implications.

Conceptual Framework & Analysis: The review is grounded in behavioral and perception-based policy theories, revealing that employee trust and perception—not just policy design—determine the real-world success of the ESI Scheme. Key themes identified include low awareness, inconsistent service delivery, procedural barriers, and underutilisation of entitled benefits. The paper also integrates comparative insights from private insurance schemes and proposes strategic institutional reforms using models by Aithal (2016) for improved service alignment.

Outcome: The findings underscore that effective policy outcomes in social security schemes depend on perception management, streamlined service delivery, and proactive communication. Strategic reforms aligned with employee needs can significantly enhance the ESI Scheme's impact, particularly through digital integration, decentralised monitoring, and inclusive outreach efforts.

Novelty/Value: This review uniquely positions employee perception as both a metric and mechanism of policy success. By bridging empirical insights with strategic management frameworks, it offers a perception-centric lens for enhancing public insurance schemes and contributes actionable recommendations for future research and reform.

Type of Paper: Systematic Review & Policy Analysis