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

Under the Employees' State Insurance (ESI) Act 1948, the employer's contribution to the ESI fund (as % of wages, current rate) is:

  • A 1.75% of wages
  • B 3.25% of wages
  • C 4.75% of wages
  • D 3.75% of wages
Correct answer: D. 3.75% of wages

Explanation

The revised ESI contribution rates (effective 2019) are: Employer 3.25% and Employee 0.75% of wages, reducing from the earlier 4.75% (employer) and 1.75% (employee) rates. The ESI Act applies to factories and establishments with 10 or more employees earning up to Rs 21,000 per month (for non-seasonal establishments). This provides medical, sickness, maternity, and employment injury benefits.

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

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