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Question
What is the rate of contribution of employer under ESI Act, 1948?
What is the rate of contribution of employer under ESI Act, 1948?
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Solution
The correct option is A 4.75% of the wages
The ESI scheme is a self-financed comprehensive social security scheme devised to protect the employees covered under the scheme against financial distress arising out of events of sickness, disablement or death due to employment injuries. The scheme is self-financing and being contributory in nature. The funds under ESI scheme are primarily built out of the contribution from the employees and employers payable monthly at a fixed percentage of wages paid. Currently, the employee contribution rate is 1.75% of the wages and that of employer’s is 4.75% of the wages paid.
The ESI scheme is a self-financed comprehensive social security scheme devised to protect the employees covered under the scheme against financial distress arising out of events of sickness, disablement or death due to employment injuries. The scheme is self-financing and being contributory in nature. The funds under ESI scheme are primarily built out of the contribution from the employees and employers payable monthly at a fixed percentage of wages paid. Currently, the employee contribution rate is 1.75% of the wages and that of employer’s is 4.75% of the wages paid.
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