Government reduced the rate of ESIC contribution from 6.5% to 4 % w.e.f. 01st July 2019

Government reduced the rate of ESIC contribution from 6.5% to 4 % w.e.f. 01st July 2019

Hi,
Good News only.
it is draft and News press advertisement only.
GO will be passed officially. we can wait for that.
Regards,
P.Packiaraj

The Gazette notification (draft) in respect of revision in rates of ESI contribution is attached for ref.

Dear Kumar,
as you mentioned this also Draft only.
once this draft as passed bill, then GO will be pass.
Regards,
P.Packiaraj

Now it's official, the Gazette notification implementing the reduction of rates w.e.f.1.7.19 has been publihsed. Pl.see the same attached.
Pl.note the change in %age than what has been widely expected hitherto, there has been further reduction -
---
.....in clause (a), for the words “equal to four and three-fourth per cent (4.3/4th %) of the
wages”, the words “equal to three and one-fourth per cent. of the wages (3.1/4th %) (i.e.3.15%) ” shall be substituted;
(b) in clause (b), for the words “equal to one and three-fourth per cent (1.3/4th%) of the
wages”, the words “equal to three-fourth per cent. of the wages (0.3/4th %) ” (i.e.0.75%)shall be
substituted.....

Hi,
ESI Contribution reduced Rate GO Attached for your information.
Regards,
P.Packiaraj

Pl.read the ESI Contribution rates w.e.f. 1.7.2019 as -
Employers' contribution Reduced from 4.3/4% (4.75%) to 3.1/4 % (3.25%) and
Employees' contribution reduced from 1.3/4% (1.75%) to 3/4th% (0.75%). Error is regretted.

Hi all,
ESIC has issued a circular reg.delay in regn.of recruits for ESI coverage:
ESIC Circular On Delay In Registration Of Employee
ESIC based on representations received from employers on recently introduced restriction in system for registration of employee, vide circular No:-P-11/12/Misc./SST Misuse/2019-Rev.II has approved new process for employer in the system while carrying out the online registration of an employee wherein date of appointment is more than ten days before, from the date of online registration. In this regard the ESIC portal will accept the registration of employees where difference between the date of appointment and date of registration is more than 10 days, provided that system will request to accept or reject the conditions mentioned for registration of an employee. If employer accepts the conditions insurance number will be allotted and a show cause notice shall be issued to the registered email id of the employer. The employer shall submit relevant reply/records within 15 days of issue of Show Cause Notice to the concerned RO/SRO in the prescribed proforma. If employer rejects the conditions, then the system will redirect the employer to change the date of appointment. Please refer the notification for detailed information. Pl.see the copy of circular attacd.

I would like to know what all components of the wages are considered in the maximum limit of 21000. If an employee is working on a 12 hour shift, will the maximum limit of 21000 be calculated on the wages for 12 hours, which includes OT wages for 4 hours. Please confirm. I can be reached at [Login to view] or [Login to view]

Dear PKKurian ji,
Name PKKurian has big identity. Same way ISS.
You can not hire a service of any person for more than 8 hours in a day. Remaining 4 hours should be treated as overtime and should be paid at double the rate. You can not keep any person throughout 4 hours overtime daily.
The wages calculated in your industry treating the wage rate for 12 hours per day is wrong.
ESI threshold limit of Rs.21000 is for 8 hours duty which is inclusive of all allowances paid monthly or paid bi-monthly, excluding (washing allowance in Maharashtra).