In ESI progam (Tie central, state, Govt. employee contribute to the fund. Employer’s contribution is –
**Core Concept**
The Employee State Insurance (ESI) program is a social security and health insurance scheme for Indian workers. The program's funding involves contributions from both employees and employers, with the specific contribution rate being an essential aspect of understanding the program's financial structure.
**Why the Correct Answer is Right**
The correct answer is based on the ESI Act, 1948, which outlines the contribution rates for employees and employers. The employer's contribution rate is typically higher than the employee's contribution rate to ensure the program's financial stability. Under the ESI Act, the employer's contribution rate is 3.25% of the employee's wages, while the employee contributes 0.75%. This distribution of contribution rates enables the program to provide comprehensive medical benefits to insured employees.
**Why Each Wrong Option is Incorrect**
**Option A:** Incorrect because it does not accurately reflect the employer's contribution rate under the ESI program.
**Option B:** Incorrect because it is not the correct contribution rate for employers.
**Option C:** Incorrect because it is not the correct contribution rate for employers.
**Clinical Pearl / High-Yield Fact**
It is essential to note that the ESI contribution rates may change over time, and it is crucial for employers and employees to be aware of the current rates to avoid any financial discrepancies.
**Correct Answer:** C. 3.25%