As per the FAQs section of the ESIC website, the ESI Scheme is a self-funding program. The contributions made by employer and employee are primarily used to support the ESI funds, which are provided on a monthly basis at a fixed percentage of salaries received. State governments are also responsible for 1/8th of the medical benefits cost.\r \r The employer contributes 3.25 per cent and the employee contributes 0.75 per cent for all employees whose individual salaries are Rs 21,000 or less per month, for a total share of 4 per cent.