Employee State Insurance is a self-financing social security scheme and health insurance plan for Indian workers, offering medical and disablement benefits. ESI Act, 1948 is introduce to regulate Insurance scheme, it is managed by Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment. ESIC is expected to manage the fund as per the rules and regulations set forth by the Act.

The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. Currently ESIC Contribution rate is 1.75% of Gross wages for Employee and Employer will contribute 4.75% of the Gross wages. The state government also contribute 1/8th share cost of medical benefit.