Q. Consider the following statements regarding “Employees’ State Insurance Scheme”:
1.It is a self-financing scheme that caters to the social security and health insurance needs of the employees.
2.The fund is regulated by the ESI Act, 1948, and is administered by the Employees State Insurance Corporation (ESIC).
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation: Employees’ State Insurance Scheme is a self-financing scheme that caters to the social security and health insurance needs of the employees.

  • The scheme is funded by both the employer and the employee, which would be remitted into the Employees State Insurance Fund.
  • The fund is regulated by the ESI Act, 1948, and is administered by the Employees State Insurance Corporation (ESIC), which is an autonomous body that was statutorily formed by the Ministry of Labour and Employment.
  • The ESI Act, 1948, applies to organisations with 10 or more employees, drawing a salary of up to ₹21,000.
  • The Government of India through Ministry of Labour and Employment decides the rate of contribution under the ESI Act.

Source: FORUMIAS