Proposed Changes to Employee Contribution Rules: How Will This Affect Low-Wage Earners?

Proposed Changes to Employee Contribution Rules

The Ministry of Labour & Employment has proposed a draft for suggestions or objections regarding the statement that 'employee contribution is not payable for persons earning wages less than Rs. 176.00 per day.'

Present Rule

Rule 52 - Exemption from Payment of Employee's Contribution - The average daily wages during a wages period for exemption from the payment of the employee's contribution under section 42 shall be up to rupees one hundred thirty-seven.

Proposed Draft

Rule 52 - Exemption from Payment of Employee's Contribution - The average daily wages during a wages period for exemption from the payment of the employee's contribution under section 42 shall be up to rupees one hundred seventy-six.

https://boardhr.blogspot.com/2019/07...employees.html

The proposed amendment to the Employees' State Insurance (Central) Rules 2019 by the Ministry of Labour & Employment suggests increasing the threshold for exemption from employee contribution to Rs. 176.00 per day. This change aims to provide relief to employees earning lower wages. The current rule sets the exemption limit at Rs. 137.00 per day, while the draft proposes raising it to Rs. 176.00 per day.

To provide feedback or suggestions on this proposed amendment, individuals and organizations can refer to the official communication channels of the Ministry of Labour & Employment. It is essential to stay updated on such changes to comply with the latest regulations and ensure proper implementation within the organization.

Employers in Kolkata, India, should monitor the progress of this proposed amendment and be prepared to adjust their payroll processes accordingly if the changes are officially implemented. Stay informed about updates through official government sources and legal advisories to ensure compliance with the revised rules.