2025 · Q38
Mr. X earns wages of ₹20,000 per month. What will be the contributions to the ESI Scheme under the Employees’ State Insurance Act, 1948?
Social Security in IndiaESI Act, 1948
- AEmployer's contribution ₹350; Employees' contribution ₹950
- BEmployer's contribution ₹650; Employees' contribution ₹150
- CEmployer's contribution ₹950; Employees' contribution ₹350
- DEmployer's contribution ₹150; Employees' contribution ₹650
Explanation
ESI contributions are 3.25% of wages for the employer and 0.75% for the employee. On Rs 20,000 this gives Rs 650 (employer) and Rs 150 (employee). The other options swap the shares or use wrong rates.