Under the Employees' State Insurance (ESI) Act 1948, what is the wage ceiling for mandatory ESI coverage of employees in establishments covered under the Act?

• A Rs. 10,000 per month
• B Rs. 15,000 per month
• C Rs. 21,000 per month ✓
• D Rs. 30,000 per month

Explanation

The wage ceiling for mandatory ESI coverage was revised to Rs. 21,000 per month (effective September 2016). Employees drawing wages up to this ceiling in covered establishments must mandatorily contribute to ESIC. The employee contribution is 0.75% of wages (revised from 1.75% in 2019) and the employer contributes 3.25% (revised from 4.75%). Establishments with ≥10 employees (in non-seasonal factories: ≥20 employees in some states) are covered.

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

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