Like most other social security schemes of the world, the ESI The scheme is also a self-funded contributory health insurance scheme. Contribution is taken as a fixed percentage of wages from employees and employers. At present, the employees pay 0.75 percent of their wages while the employer pays 3.25 percent of the wages payable to the employees. Employees receiving wages of Rs. 176 / - per day have been exempted from payment of contribution. As per the provisions made in the Act, the State Governments bear 1/8 of the expenditure on medical benefits. This expenditure is made under the maximum limit of Rs. 1500 / - per insured individual family unit per year. The expenditure incurred above the maximum limit by the State Governments and not falling under the shareable pool is borne by the State Government concerned.