| 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. 70/- 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 Govts,
over and above the ceiling, and not
falling within the shareable pool, is
borne by the State Governments concerned. |
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