- 1 Marks
Question
Under the National Health Insurance Act, Cap N42 LFN 2004, an employer who has a minimum of ten employees in the private sector is expected to pay 10%, while the employee pays…………….. of his basic salary.
A. 10%
B. 8%
C. 5%
D. 4%
E. 2%
Answer
Answer: C 5%
Explanation: The correct answer is C. Under the National Health Insurance Act, employees are required to contribute 5% of their basic salary to the health insurance scheme, while employers contribute 10%. This ensures that both employers and employees share the cost of health insurance coverage in the private sector.
- Reasoning: The employee contribution of 5% is stipulated in the Act to help ensure that employees are covered under the National Health Insurance Scheme, along with the employer’s 10% contribution.
- Topic: Tax Administration and Enforcement
- Series: MAY 2021
- Uploader: Kwame Aikins