Under the Employees' State Insurance Act 1948 (ESI Act), the wage ceiling for compulsory ESI coverage (as revised in 2017) is:
- A Rs. 10,000 per month
- B Rs. 21,000 per month ✓
- C Rs. 15,000 per month
- D Rs. 25,000 per month
Explanation
The wage ceiling for ESI Act coverage was revised to Rs. 21,000 per month from Rs. 15,000 per month, effective 1 January 2017. Employees in covered establishments earning up to Rs. 21,000 per month are compulsorily covered. Workers with disabilities have a higher ceiling of Rs. 25,000 per month. The employee contribution is 0.75% and employer contribution is 3.25% of wages (revised 2020 rates).
Reference: Park's Textbook of Preventive and Social Medicine, 27th ed.
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