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ESI refers to Employees State Insurance. This is a self-financing social security and health insurance scheme for the working class and is run by ESI Corporation.

In this scheme, an employee contributes part of salary as an insurance premium. The employer also contributes to the scheme. ESI Corporation collects this money and runs ESI Hospitals. An employee can avail of the hospital service for free.

ESI contribution is mandatory for all employees who draw a gross of less than 21000/-

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