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

Under the Employees' State Insurance (ESI) Act 1948, the wage ceiling for compulsory ESI coverage for workers was revised to which amount (as of the latest notification)?

  • A Rs 21,000 per month
  • B Rs 7,500 per month
  • C Rs 15,000 per month
  • D Rs 25,000 per month
Correct answer: A. Rs 21,000 per month

Explanation

The ESI Act 1948 was originally applicable to workers earning up to Rs 6,500/month, subsequently revised to Rs 15,000/month (2010). The most recent revision in 2017 raised the wage ceiling to Rs 21,000 per month (Rs 25,000 for persons with disability). Workers in factories and establishments with 10 or more employees (or 20 in some states) earning up to Rs 21,000/month are compulsorily covered. ESI contributions: employer 3.25% of wages, employee 0.75% of wages (total 4%). This dual-function social security scheme provides medical benefit, sickness benefit, maternity benefit, disablement benefit, and dependent's benefit.

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

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