Confused About ESI Contribution Rates? Need Help with Portal Issues for New Coverage

Dear All,

Our factory is covered under the ESI Act, 1948, with effect from 01/09/2016, as per the new amendment of the act. My query is, as per the new Government Order (GO), if any establishment is newly covered under the ESI Act, the contributions will be Employee 1% and Employer 3% instead of 1.75% and 4.75% for the next 24 months. However, I am trying to upload the challan through the portal, but the system generates the challan for 1.75% and 4.75%, totaling 6.5% instead of 4%. Please guide me in this regard.

Regards,
Ram

Reduced rates of contribution are applicable only in specified zones where ESIC is newly launched.

Mr. U.S. Sharma is right.

Contribution at 3% and 1% for 24 months is applicable to the area where the ESI scheme is being freshly launched. If the scheme is already existing in your area, then the normal contribution will be applicable.

Dear Jalluriram,

Your query is valid, and there is a need to change the software by the ESIC officials. The software team in Delhi is working on it, and it will take some time. In the meantime, you can submit the challan with the old rate - i.e., 6.50%, and afterwards, you will get the rebate on the same.

Govind Pawar
9823411433

"Contribution at 3% and 1% for 24 months is applicable to the areas where the ESI scheme is freshly launched. What are the areas where it's newly launched as my establishment is in Sikkim, District - East Sikkim.

Sumitro"

Respected sir, please don't engage in guesswork. I don't believe there is a general order for newly covered areas as such. There should always be uniformity. Kindly verify again and provide suggestions to the forum. Thank you.

This scheme (1% & 3%) ends on 31.08.2018. It counts from the starting date - 01.09.2016 (2 years).

Do we have any government orders or circulars for EPF, ESIC, gratuity, bonus? If yes, please share only orders issued by the government.