How much is the required employer's contribution upon an employee's compulsory coverage taking effect?

Dive into the world of Human Resources with the CHRA Test. Access multiple choice questions and hints. Prepare thoroughly and ace your exam!

The correct answer is based on the set regulatory framework for employer contributions in relation to an employee's compulsory coverage. In many jurisdictions, the employer's contribution begins at a specific percentage of the employee's monthly salary credit, which is often calculated to ensure that employees receive adequate benefits.

In this case, the requirement for the employer is to contribute 1% of the monthly salary credit. This percentage is typically established to balance the overall contributions made towards employee benefits, ensuring both the employer and employee have shared responsibility in financing these benefits. This setup is designed to promote greater economic security for employees while not imposing an excessive burden on employers.

The other percentages mentioned do not align with the regulatory expectations for employer contributions under compulsory coverage, making them incorrect in this context. Therefore, understanding that the 1% contribution is a standardized rate reinforces its importance in adhering to legal and financial guidelines within human resource practices.

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