**Core Concept**
The Employee's State Insurance (ESI) scheme is a social security and health insurance program for Indian workers. The contribution to ESI is a mandatory requirement for both employers and employees, aimed at providing financial protection against work-related injuries, diseases, and other contingencies.
**Why the Correct Answer is Right**
The ESI contribution is a statutory requirement under the ESI Act, 1948. The contribution rate is 3.25% of the wages payable to an employee, which is divided equally between the employer and the employee. This contribution is used to fund various benefits, including medical care, cash compensation, and rehabilitation services for insured employees. The ESI contribution is a compulsory payment, and employers are required to deduct the employee's share from their wages and deposit it with the ESI corporation.
**Why Each Wrong Option is Incorrect**
**Option A:** This option is incorrect because it does not specify the contribution rate or the parties responsible for making the payment.
**Option B:** This option is incorrect because it is not a correct representation of the ESI contribution rate or the parties responsible for making the payment.
**Option C:** This option is incorrect because it mentions a different scheme altogether, and not the ESI contribution.
**Clinical Pearl / High-Yield Fact**
One important aspect to remember is that the ESI contribution is a statutory requirement, and employers are responsible for deducting the employee's share and depositing it with the ESI corporation. This ensures that employees receive the benefits they are entitled to in case of work-related accidents or illnesses.
**Correct Answer:** 3.25%
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