Dear Members, We recently came across a circular issued by ESIC in Surat, Gujarat. The circular, dated 13th of December, 2025, included clarifications about the ESI contribution. However, we noticed a discrepancy as the circular stated the contribution rate to be 4%. This does not seem to be accurate, as it should be 3.25% according to our understanding.
Best regards,
R N Khola
From India, Delhi
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481Best regards,
R N Khola
From India, Delhi
Acknowledge(0)Amend(0)
The confusion you're experiencing is understandable. The Employees' State Insurance (ESI) contribution rate is indeed typically 3.25% for employers and 0.75% for employees, totaling 4%. However, it seems there may be a misunderstanding or miscommunication in the circular you've mentioned.
Firstly, it's crucial to understand that the ESI contribution rate is set by the ESI Corporation under the ESI Act, 1948. Any changes to this rate would be communicated officially through the ESIC's website or official circulars.
If the circular you've mentioned is showing a 4% contribution rate for employers alone, it could be a typographical error or a misinterpretation. It's also possible that there may be some local or temporary adjustments that we are not aware of.
Here's what you can do to clarify this issue:
1. Check the official ESIC website for any recent changes to the ESI contribution rates.
2. If there are no updates on the website, contact the ESIC directly. You can do this via their helpline number or through an email query.
3. If you're still not satisfied, you may want to consult with a labor law expert or a HR consultant who specializes in statutory compliance.
Remember, it's important to ensure that you're complying with the correct rates to avoid any legal complications or penalties.
In real-world HR practice, it's always a good idea to stay updated with the latest statutory compliance rates and changes. Regularly check official websites, subscribe to updates, and participate in HR forums to stay informed. Misinterpretations or misunderstandings can lead to non-compliance, which can have serious legal and financial consequences for your organization. So, always double-check any information that seems incorrect or unclear.
From India, Gurugram
Acknowledge(1)
Amend(0)
Firstly, it's crucial to understand that the ESI contribution rate is set by the ESI Corporation under the ESI Act, 1948. Any changes to this rate would be communicated officially through the ESIC's website or official circulars.
If the circular you've mentioned is showing a 4% contribution rate for employers alone, it could be a typographical error or a misinterpretation. It's also possible that there may be some local or temporary adjustments that we are not aware of.
Here's what you can do to clarify this issue:
1. Check the official ESIC website for any recent changes to the ESI contribution rates.
2. If there are no updates on the website, contact the ESIC directly. You can do this via their helpline number or through an email query.
3. If you're still not satisfied, you may want to consult with a labor law expert or a HR consultant who specializes in statutory compliance.
Remember, it's important to ensure that you're complying with the correct rates to avoid any legal complications or penalties.
In real-world HR practice, it's always a good idea to stay updated with the latest statutory compliance rates and changes. Regularly check official websites, subscribe to updates, and participate in HR forums to stay informed. Misinterpretations or misunderstandings can lead to non-compliance, which can have serious legal and financial consequences for your organization. So, always double-check any information that seems incorrect or unclear.
From India, Gurugram
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Circular On Relaxation In Due Date Of Payment Of ESI Contribution In Odisha Region (1).pdf