ESI Contribution Update Issue
I have made a deduction from the employee's salary for ESI at 1% and from the employer's side at 3%, and updated the challan on the ESI portal as per the recent draft notification of ESI. In the notification, it was mentioned that "51B In areas where the act is implemented for the first time, the rate of the employer's and employee's contribution for the initial 24 months from the date of implementation is as follows:
a. Employer Contribution - Equal to 3% of the wages payable to employees
b. Employee Contribution - Equal to 1% of the wages payable to employees
However, the ESI portal is not allowing me to generate the challan as it is not updated. Kindly suggest whether I should submit the challan with the pre-approved rate (1.75% for the employee and 4.75% for the employer) or wait for the implementation of the new rate.
Please help me out!
Regards
From India, Udaipur
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2I have made a deduction from the employee's salary for ESI at 1% and from the employer's side at 3%, and updated the challan on the ESI portal as per the recent draft notification of ESI. In the notification, it was mentioned that "51B In areas where the act is implemented for the first time, the rate of the employer's and employee's contribution for the initial 24 months from the date of implementation is as follows:
a. Employer Contribution - Equal to 3% of the wages payable to employees
b. Employee Contribution - Equal to 1% of the wages payable to employees
However, the ESI portal is not allowing me to generate the challan as it is not updated. Kindly suggest whether I should submit the challan with the pre-approved rate (1.75% for the employee and 4.75% for the employer) or wait for the implementation of the new rate.
Please help me out!
Regards
From India, Udaipur
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Clarification on ESI Contribution Rates
As far as I understand, the draft notification dated 25-07-2016 issued by the appropriate government under ESI (Central) Rules, 1950 has not yet been finalized, and no final notification has been issued. No date has been mentioned in any notification indicating when the revised rates will be applicable.
I believe that your action of deductions at the reduced rates is not proper. You should have contacted the nearest Branch Office or Regional Office of ESIC in the jurisdiction where your unit is located. It would be better if you contact the said office(s) before taking any suitable action. I think the department will make changes in their online procedure or portal only after the appropriate government completes the legal procedure of amendments in the rules.
Regards
From India, Noida
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As far as I understand, the draft notification dated 25-07-2016 issued by the appropriate government under ESI (Central) Rules, 1950 has not yet been finalized, and no final notification has been issued. No date has been mentioned in any notification indicating when the revised rates will be applicable.
I believe that your action of deductions at the reduced rates is not proper. You should have contacted the nearest Branch Office or Regional Office of ESIC in the jurisdiction where your unit is located. It would be better if you contact the said office(s) before taking any suitable action. I think the department will make changes in their online procedure or portal only after the appropriate government completes the legal procedure of amendments in the rules.
Regards
From India, Noida
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Yes, this is correct. However, without providing hospital and medical facilities in the newly implemented area, how is the government supposed to ask for contributions from both employers and employees? I am facing strong opposition from all the unions simultaneously. How can this be resolved?
From India, Udaipur
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From India, Udaipur
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Addressing ESIC Issues with Authorities
It would be better if you discuss the issue with the appropriate authorities of ESIC in the state where your unit is located. If the said authority fails to provide reasonable medical facilities at a reasonable distance from the place where workers are concentrated, the matter can be taken up before the High Court through an appropriate writ. This writ would request a stay of the enforcement of the scheme until the medical facilities are provided at a reasonable distance. I feel that the genuine demands of the union of workers should not be ignored by the management.
With best wishes,
From India, Noida
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It would be better if you discuss the issue with the appropriate authorities of ESIC in the state where your unit is located. If the said authority fails to provide reasonable medical facilities at a reasonable distance from the place where workers are concentrated, the matter can be taken up before the High Court through an appropriate writ. This writ would request a stay of the enforcement of the scheme until the medical facilities are provided at a reasonable distance. I feel that the genuine demands of the union of workers should not be ignored by the management.
With best wishes,
From India, Noida
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Thanks a lot for feedback . I have ask the Union members to forward their Demand letter to ESIC authority so that meanwhile we can be on safer side....
From India, Udaipur
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From India, Udaipur
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GOI Proposal for reduction in ESI Contributions.p df