Community Medicine (PSM) · Occupational Health and Legislation (ESI, Factories Act)

Under the Employees' State Insurance (ESI) Act 1948, the wage ceiling for compulsory coverage was revised in 2017. Which of the following is the CURRENT statutory threshold for ESI coverage of employees?

  • A Employees earning up to Rs. 10,000/month
  • B Employees earning up to Rs. 15,000/month
  • C Employees earning up to Rs. 25,000/month
  • D Employees earning up to Rs. 21,000/month
Correct answer: D. Employees earning up to Rs. 21,000/month

Explanation

The wage ceiling for ESI (Employees' State Insurance) compulsory coverage was revised from Rs. 15,000/month to Rs. 21,000/month per month with effect from 1 January 2017. Employees earning up to Rs. 21,000/month in ESI-applicable factories/establishments must be covered under the scheme. The employer contributes 3.25% of wages, and the employee contributes 0.75% (reduced from 1.75% in 2019 for employees). Employees earning up to Rs. 176/day are exempt from their own contribution. This social security scheme covers medical, sickness, maternity, disablement, and dependent benefits.

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

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