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.