OBJECT OF THE ACT. The Employees* State Insurance Act (ESI Act) was enacted with the object of introducing a scheme of health insurance for industrial workers. — (1) The contribution payable under this Act in respect of an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer’s contribution) and contribution payable by the employee (hereinafter referred to as the employee’s contribution) and . The ESI Act applies to • Non – seasonal Factories using power in and Employing ten (10) or More persons • Non – seasonal and non- power using factories and establishments employing twenty(20) or more persons • Employees of the Factories and Establishments in receipt of wages not exceeding Rs,/- Per month are.