Amendment to Employee State Insurance (Central) Rules, 1950
As per the amendment to the Employee State Insurance (Central) Rules, 1950, via Labour department notification G.S.R. 959, the rate of contribution was reduced for employers to 3% and for employees to 1% in areas where the ESI Act was newly implemented. For further clarification, the Labour department has released notification No. P-11/12/Misc./01/2016-Rev.II, which requires that employers who are newly registered in areas where the ESI Act was newly implemented between 01.04.2016 and 05.10.2016, must pay the full contribution from the date of registration or implementation until 05.10.2016. Thereafter, from 06.10.2016, employers shall pay contributions at the reduced rate (3% for employers and 1% for employees) for a period of two years, effective from 06.10.2016.
From India, Bengaluru
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8As per the amendment to the Employee State Insurance (Central) Rules, 1950, via Labour department notification G.S.R. 959, the rate of contribution was reduced for employers to 3% and for employees to 1% in areas where the ESI Act was newly implemented. For further clarification, the Labour department has released notification No. P-11/12/Misc./01/2016-Rev.II, which requires that employers who are newly registered in areas where the ESI Act was newly implemented between 01.04.2016 and 05.10.2016, must pay the full contribution from the date of registration or implementation until 05.10.2016. Thereafter, from 06.10.2016, employers shall pay contributions at the reduced rate (3% for employers and 1% for employees) for a period of two years, effective from 06.10.2016.
From India, Bengaluru
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Reduced rate of ESIC contribution for first time implemented areas 15.12.2016.pdf