Under the ESI Act 1948, the contribution rate for the insured person (employee) towards the ESI fund (as of current rates) is:

• A 1.75% of wages
• B 0.75% of wages ✓
• C 1.5% of wages
• D 3.25% of wages

Explanation

Following the ESI contribution rate revision in July 2019, the employee's contribution was reduced from 1.75% to 0.75% of wages. The employer's contribution was simultaneously reduced from 4.75% to 3.25% of wages. Employees earning daily wages up to ₹137 are fully exempted from their contribution. These rates were reduced to extend coverage to more workers and reduce the burden on low-wage employees. The reduced rate of 0.75% (employee) and 3.25% (employer) is current as of 2019.

Reference: Park's Textbook of Preventive and Social Medicine, 27th ed.

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Written and medically reviewed by the StethoPrep medical team.