Under the Employees' State Insurance Act 1948, the wage ceiling for ESI coverage has been revised. An employee drawing a salary up to which monthly amount is currently covered under ESI?
- A Rs. 15,000 per month
- B Rs. 25,000 per month
- C Rs. 18,000 per month
- D Rs. 21,000 per month ✓
Explanation
The wage ceiling for ESI coverage was revised from Rs. 15,000 to Rs. 21,000 per month in 2017. Employees in establishments covered under ESI Act (factories and specified establishments with 10 or more employees) earning up to Rs. 21,000/month are compulsorily covered. For persons with disability, the ceiling is Rs. 25,000. ESI provides medical, sickness, maternity, disablement, and dependent benefits. The employee contributes 0.75% and employer contributes 3.25% of wages.
Reference: Park's Textbook of Preventive and Social Medicine, 27th ed.
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