Proposed ESI Contribution Rate Cuts: How Will This Impact Employers and Employees?

Friends, PFA draft of notification for proposed reduction in rates of ESI contribution as under:
Employer's contribution : from 4¾% to 4%
Employee's contribution: from 1¾% to 1%
Final notification will be issued after getting comments from all concerned.
Thanks

Thank you for the circular.

Please, can you guide me on whether we should not deduct ESI from an employee working in a factory whose total salary, including overtime (OT), is more than 21,000/-? In the event of an accident, who is responsible for paying the medical allowance and damages, especially in the case of death?

Can you please explain the same briefly? I would be highly obliged for the same.

I am attaching a sample from the salary sheet.

Dear Subvimal,

Your attached file has incorrect calculations. You have calculated ESI on amounts above 21k, which is inaccurate. ESI is applicable only on gross salaries equal to or below 21000.

Regarding PF, PF deductions should be made only on Basic+DA. The limit for PF ceiling is 15000 (Basic + DA).

Thank you.