Understanding the New ESIC Contribution Rates from August 2018: What Employers and Employees Need to Know

ESIC Contribution for the newly implemented area of 1% employees' share and 3% employers' share under rule 51-B stands terminated from 1st August 2018. The rate of contribution will be 1.75% for employees and 4.75% for employers starting in August 2018.

Please find the enclosed file for your reference.

Dear Mr. Rakesh,

The notification introduces Rule 51-B for a new area contribution for the employer at 3% and for the employee at 1%. The notification is effective from 06.10.2016. Employers shall pay contributions at a reduced rate (3% for the employer and 1% for the employee) for a period of two years, starting from 06.10.2016. This period will end on 06.10.2018 (6th October 2018).

Dear Mr. Venkatesan,

Kindly go through the notification for your ready reference.

Regards,
Anand Ingole

Mr. Anand Ingole,

Please refer to the website ESIC. It shows that full contribution will be effective from 01/08/2018. Please clarify.

Regards,
Venkatesan.C

Rate of contribution will be 1.75% and 4.75% for employees and employers from August 2018. Please attach GR for the above-said.

Is there any change in ESI for construction workers? I heard that the court has stayed, and it is not mandatory to contribute to ESI. Is it true?

Is there any change in ESI for offshore labor or workers? I heard that the court has issued a stay, and it is not mandatory to contribute to ESI. Is it true?

What is the meaning of "Newly Implemented Area" under ESIC Rule 51B, whether it refers to newly registered establishments or newly implemented districts of the state where ESIC Rule is being implemented for the first time.

Please advise. Thanks.

Pramod Kumar