Under the Employees' State Insurance (ESI) Act 1948, the employer's contribution rate and employee's contribution rate as a percentage of gross wages (as per 2019 revision) are respectively:
- A 4.75% employer, 1.75% employee
- B 6.5% employer, 2.25% employee
- C 3.25% employer, 0.75% employee ✓
- D 4.0% employer, 1.0% employee
Correct answer: C. 3.25% employer, 0.75% employee
Explanation
Effective from July 2019, the ESI Act revised contribution rates downward: employer contributes 3.25% of gross wages, and the employee contributes 0.75% of gross wages (reduced from 4.75% and 1.75% respectively). Workers earning ≤₹176/day are exempt from the employee's contribution but are still covered. The ESI scheme provides medical, sickness, maternity, disablement, and dependant benefits to factory workers earning ≤₹21,000/month (threshold as of 2017 revision).
Reference: Park's Textbook of Preventive and Social Medicine, 27th ed.
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