Under the Employees' State Insurance (ESI) Act 1948, the employer's contribution rate as a percentage of wages payable to the ESIC has been reduced to which current rate (as per the 2019 amendment)?
- A 4.75%
- B 3.25% ✓
- C 3.75%
- D 2.25%
Correct answer: B. 3.25%
Explanation
Following the 2019 revision, the employer's contribution to ESI was reduced from 4.75% to 3.25% of wages, and the employee contribution was reduced from 1.75% to 0.75% of wages. These reductions were intended to reduce the financial burden on employers (especially small establishments) and increase formal sector employment coverage. Employees earning wages up to ₹176 per day are exempt from the employee contribution but remain eligible for ESI benefits.
Reference: Park's Textbook of Preventive and Social Medicine, 27th ed.
High-yield for: NEET PGINI-CETNExTFMGEUSMLEPLABMRCP
Written and medically reviewed by the StethoPrep medical team.