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FINANCES

  • ESI Scheme is a " self-financing " health insurance scheme.
  • Contributions are raised from the insured employees and their employers as a fixed percentage of wages
  • The contributions paid by the employees and the employers are deposited in a common pool known as the ESI Fund, which is utilised for meeting the administrative expenses, cash benefits and medical benefits to the insured persons (IP) and their dependents.
  • The rates of contribution are : -
    1. Employees' Contribution: 1.75 percent of wages
    2. Employers' Contribution: 4.75 percent of wages
    3. State Govts : 12.5% (1/8 th ) share of

                        medical expenditure
* Employees' earning up to Rs.70/- a day as wages are exempted from payment of their part of contribution.