Explanation:

Employees’ State Insurance is a contributory type scheme based on tripartite contribution principle in which employers, employees and state government is included. Presently, from the 1st January 1997 the rate of employees' contribution is 4.75 per cent and the employers’ share is 1.75 per cent of an employee’s total monthly wages which includes basic pay and dearness allowance. The medical care and 96 facilities is administered by State Government who have statuary responsibility in this regard. The total expenditure of medical benefit is shared by the State Government and the Employees’ State Insurance Corporation (ESIC) in the ratio of 1 : 7. Employees in receipt of daily average wage upto rate 50/- are exempted from payment of contribution however, employers’ contribute their own share in respect of such employees.