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The ESI Scheme, like most of the social security schemes the world over, is a self-financing health insurance scheme. Contributions are raised from covered employees and their employers as a fixed percentage of wages. As of now, covered employees contribute 1.75% of their wages, whereas, the employers contribute 4.75% of the wages payable to the insured persons. Employees, earning up to Rs. 100/- a day are exempted from payment of their share of contribution. The State Governments, as per provisions of the Act, contribute 1/8th of the expenditure of medical benefit within a ceiling of Rs. 1200/- per insured person per annum. Any additional expenditure incurred by the State Government, over and above the ceiling, and not falling within the shareable pool, is borne by the State Governments concerned.

Please know that the wage ceiling for coverage of employees under the ESI Act has been enhanced from Rs. 10,000/= p/m to Rs. 15,000/= p/m with effect from 01.05.2010. Necessary gazette notification can be found in
Unemployment Allowance (RGSKY) Scheme improved : Allowance for 12 months and vocational training on contributory condition of 3years.
The Scheme provides full range of medical care
ESIC is computerizing different functions from August 2010 which will enable the employer and employees