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 The
Scheme is primarily funded by
contributions raised from Insured
Employees and their employers in
the implemented areas as a small
but specified percentage of wages
payable to such employees.
Employees
in receipt of an average daily
wage of Rs. 40/- or less are
exempted from payment of their
share of contribution but are
entitled to all social security
benefits under Scheme.
The
rate of contribution are
The
State Governments as per
provisions of the Act, contribute
12.5 percent of expenditure on
medical care on ESI beneficiaries
in their respective States within
the per capita ceiling. Any
expenditure over and above
this ceiling is borne
entirely by the State Govts.
The
contributions paid by employees
and employers are deposited in a
common pool known as the ESI Fund
that is utilized for payment of
cash benefits to the insured
persons and their dependants, as
well as, for providing medical
facilities to the beneficiaries.
The administrative and other
expenses of the Corporation are
also met from this fund.
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