Under the Employees' State Insurance (ESI) Act 1948, 'Employment Injury Benefit' provides cash compensation for incapacity resulting from occupational disease. The contribution rate structure (as amended in 2019) for employers in most Indian states is:

• A 4.75% of wages (employer) and 1.75% of wages (employee)
• B 3.25% of wages (employer) and 0.75% of wages (employee) ✓
• C 2.50% of wages (employer) and 0.50% of wages (employee) — post 2019 revision
• D 5% of wages (employer) and 2% of wages (employee)

Explanation

ESI contribution rates were reduced from 6.5% (employer 4.75% + employee 1.75%) to a combined 4% with effect from 1 July 2019: the standard revised rates are employer 3.25% and employee 0.75% of wages. Option A reflects the pre-2019 rates. Option C (2.50% + 0.50%) is the concessional rate applicable to certain new factories or special economic zones. Option D is not an actual ESI rate. Park's 27th edition and the ESIC notification document the standard post-2019 employer contribution as 3.25% and employee contribution as 0.75%.

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

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Written and medically reviewed by the StethoPrep medical team.