ESI provides medical care, sickness/maternity benefits and disability cover to employees earning up to a wage threshold, through ESIC hospitals/dispensaries. The employee contributes 0.75% and the employer 3.25% of wages. It's mandatory for covered establishments and applies to eligible lower-wage staff - separate from any private GMC the employer offers.
In India
The wage-eligibility threshold is ₹21,000/month (₹25,000 for persons with disability). Employees above the threshold aren't ESI-covered and rely on GMC/other cover instead.
In practice
A support-staff employee earning ₹18,000/mo is ESI-covered: they access ESIC medical facilities and sickness benefit, funded by ₹135 (0.75%) from them and ₹585 (3.25%) from the employer monthly.