How Will the Proposed ESIC Contribution Rate Changes Impact Employers and Employees?

rakesh_bhagat26@rediffmail.com
ESIC Contribution Rate Changes

As per The Gazette of India, the Central Government plans to lower the ESIC Contribution Rate to 4% and 1%. Currently, the ESIC contribution rate is 1.75% of the wages, and that of the Employer's is 4.75% of the wages paid/payable in respect of the employee in every wage period. Now, the Central Government is planning to lower the Employee's Contribution Rate to 1% and that of the Employer's to 4%. Draft rules were published on 15/02/2019 for the information of all persons likely to be affected.

Any objection or suggestion, which may be received from any person in respect of the said draft rules within thirty days, will be considered by the Central Government. For more details, please see the enclosed notification hereunder.
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vinod kumar sood
It is useful information for employees who are paying ESI, as they will now benefit from a 0.75% increase in their take-home salary.
srikanth1295
Any update on the ESIC reduced contribution rate effective date?
vinod kumar sood
Good news for employees that their take-home pay will be increased by 1%.

vk sood
hr dept.
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