Contribution of employees to ESIS corporation is______ % of wages.(MHPGM CET 2008)
First, I need to figure out what the question is really about. ESIS might be a typo. Maybe they meant the Employees' State Insurance Scheme (ESIS)? In India, the Employees' State Insurance Corporation (ESIC) is a common organization. The question is likely about the contribution rates under the ESIC.
Under the ESIC, both employees and employers contribute to the insurance. The employee's contribution is typically 1.75% of their wages, while the employer contributes 4.75%. So the correct answer here is 1.75%. The options probably include this percentage.
Now, the user wants the explanation structured in specific sections. Let's start with the core concept. The core concept here is the contribution rates under the Employees' State Insurance Scheme in India.
Next, explaining why the correct answer is right: the employee's contribution is 1.75%, which is a fixed rate. The employer's contribution is higher, 4.75%, making the total 6.5%.
For the incorrect options, each wrong choice would be other percentages. For example, 4.75% is the employer's share, 6.5% is the total, and maybe another option like 5% could be a distractor.
The clinical pearl here is to remember that the employee's share is less than the employer's, and the total combined is 6.5%. Mnemonically, "employee 1.75, employer 4.75" helps.
Finally, the correct answer is 1.75%, so the letter corresponding to that option would be the correct one. Since the options are not provided, the answer line just states the correct percentage.
**Core Concept**
The question tests knowledge of the Employees' State Insurance Scheme (ESIS) contribution rates in India. Under this statutory social security program, both employees and employers contribute a fixed percentage of wages toward health insurance and related benefits.
**Why the Correct Answer is Right**
The employee's contribution to the Employees' State Insurance Scheme (ESIS) is **1.75% of wages**, while the employer contributes **4.75%**, totaling **6.5%**. This rate is mandated by the ESI Act, 1948, and applies to eligible wage earners in the organized sector. The lower employee contribution ensures affordability while maintaining employer responsibility for the majority of funding.
**Why Each Wrong Option is Incorrect**
**Option A:** Likely refers to the employer’s contribution (4.75%) or total combined rate (6.5%), not the employee’s share.
**Option B:** Could represent a historical rate or a distractor percentage (e.g., 5%) unrelated to current ESIS regulations.
**Option C/D:** May reflect incorrect assumptions about tax rates or other statutory deductions (e.g., PF contributions).
**Clinical Pearl / High-Yield Fact**
Remember: **"Employee 1.75, Employer 4.75"** for ESIS contributions