For all employees earning ₹21,000 (US$260) or less per month as wages, the employer contributes 3.25% and the employee contributes 0.75%, total share 4%. This fund is managed by the ESI Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family. ESI scheme is a type of social security scheme for employees in the organised sector.

As per the section 46 of the ESI Act, 1948, six benefits are envisaged to its subscribers.

1. Medical benefit
2. Sickness benefit
3. Maternity benefit
4. Disablement benefit
5. Dependants benefit
6. funeral expenses

The employees registered under the scheme are entitled to medical treatment for themselves and their dependents, unemployment cash benefit in certain contingencies and maternity benefit in case of women employees. In case of employment-related disablement or death, there is provision for a disablement benefit and a family pension respectively.