Dear Sir,

From the 1st of August 2016, ESIC is applicable throughout Maharashtra. As per ESIC rules, deduction of employees' part is 1.75% and Employers' part is 4.75%, totaling 6.5% paid to ESIC contribution. However, I have received a new notification stating that the contribution is 3% and 1%. I am confused whether this information is true or false. Please clarify which is correct.

Thanks,
Rahul

From India, Pen
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1. Sir, I believe the proposed new notification, as mentioned by you, is only a draft intention notification issued by the Ministry of Labour & Employment. The required amendment will be considered by the appropriate government after the elapse of time as mentioned in the notification, and a fresh final notification is expected to be issued, indicating the date of the implementation of the new rates of contribution.

2. Furthermore, I think the proposed amendment in the rules/rates of contributions will be applicable only concerning new areas to be brought under the ESI Act, 1948 u/s 1(3) and will have no effect on presently implemented areas and employers currently in compliance. I hope you will examine the position regarding the so-called "new notification" as mentioned by you in your thread. If you have copies of the final notifications, kindly provide an online link for the information of the members of this forum.

From India, Noida
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Dear Rahul, ESIC should deduct with 1% from salary, it is correct.
From India, New+Delhi
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can any body please share the latest notification of ESIC contribution.
From India, Nasik
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Please note that the proposed amendment of reduced rates of contributions are applicable only to new implemented areas. P K Sharma
From India, Delhi
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Sir, the said draft notification for separate rates of contributions in respect of newly implemented areas has now been finalised through final notification dated 06/10/2016.
From India, Noida
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