ESI Scheme is govern by the Employees' State Insurance Corporation, employed according to the ESI Act 1948.
The ESI Scheme refers to companies and other business viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein,
- 10 or more artists ( 20 or more in some states) serving and
- Drawing Salary/wages upto Rs.21,000/- per month.
ESI Corporation has expanded the benefits of the ESI Scheme to the workers deployed on the construction sites situated in the implemented regions under ESI Scheme w.e.f. 1st August, 2015.
Under the ESI Scheme,
- Employer contributes 4.75% of the wages.
- Employees' Contribution is 1.75% of the wages.
- Employees, earning less than Rs. 137/- a day as daily wages, are exempted from payment of their share of contribution.Employers will however contribute their own share in respect of these employees.