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The Employees State Insurance Act covers employees drawing wages not exceeding?
Question

The Employees State Insurance Act covers employees drawing wages not exceeding?

A.

Rs. 19,000 per month

B.

Rs. 20,000 per month

C.

Rs. 21,000 per month

D.

Rs. 22,000 per month

Correct option is C


Sol. The Employees' State Insurance (ESI) Act provides social security to employees earning up to ₹21,000 per month. It covers medical, disability, maternity, and dependent benefits. The wage ceiling was last revised to ₹21,000 w.e.f. January 1, 2017. Employees earning beyond this are not eligible for ESI benefits.
Explanation of each option:
· (a) Rs. 19,000 – This was an older threshold before the 2017 revision. It no longer applies under the current notification.
· (b) Rs. 20,000 – Close, but not accurate. Though it may be considered during proposals, it's not the legal ceiling.
· (c) Rs. 21,000 – Correct. It is the official and current upper limit for ESI coverage for salaried employees.
· (d) Rs. 22,000 – Exceeds the allowed limit under ESI Act; employees earning this are ineligible for ESI.

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