Answer Posted / priya

The ESI Scheme is mainly financed by contributions raised from employees covered under the scheme and their employers, as a fixed percentage of wages. As of now, the rates of contribution are:-

( i )

Employees’ Contribution

:

1.75 percent of wages



(ii)

Employers’ Contribution

:

4.75 percent of wages



Employees’ earning upto Rs.50/- a day as wages are exempted from payment of their part of contribution.
The State Govts bear one-eighth share of expenditure on Medical Benefit within the per capita ceiling of Rs.900/- per annum and any additional expenditure beyond the ceilin

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