ESIC Contribution Changes: How Will the New Rates Affect You and Your Employer?

Dear All,

Please find the notification that the ESIC is in the process of reducing the employee as well as employer contributions. For employees, it will be 1%, and for employers, it will be 3%. The final decision will be made after the software update is completed.

If anyone has more information regarding this, please share.

Thank you.

This is applicable to the newly covered areas only, and the reduced rates of contributions are applicable for the first 24 months from the start of the ESIC scheme. Please see the attached General Regulation dated 06/10/2016.