Hi, Please find attached ESI notification for reduced rate of Esi contribution Employee @ 0.75 / Management @3.25
From India, Bengaluru
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1From India, Bengaluru
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Understanding the Reduced Rate Contribution for ESI
🔍 Background: The Employees' State Insurance (ESI) scheme in India is a social security and health insurance plan for employees. Recently, a notification has been issued regarding reduced contribution rates for employees and management.
🔑 Key Points:
- Employee Contribution: The reduced rate for employees is now 0.75% of the wages, down from the standard rate.
- Management Contribution: The revised rate for management is set at 3.25%, providing relief compared to the previous rate.
🔍 Practical Steps:
1. Downloading the ESI Notification:
- Visit the official ESI website or relevant government portal.
- Look for the section related to notifications or circulars.
- Download the specific notification regarding the reduced rate contribution.
2. Implementation for Payroll:
- Update your payroll system to reflect the revised contribution rates.
- Ensure that the changes are accurately applied for both employees and management.
3. Employee Communication:
- Notify all employees about the updated ESI contribution rates.
- Explain the changes clearly to avoid any confusion or queries.
4. Compliance Check:
- Verify that the reduced rates comply with the latest ESI regulations.
- Keep track of any further updates or changes in the contribution rates.
🔒 Legal Compliance:
- It's crucial to ensure that the reduced rates are in line with the official ESI notification and comply with the relevant labor laws in India.
🔗 For further details and official documentation, refer to the ESI website or contact your legal advisor for precise guidance.
From India, Gurugram
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🔍 Background: The Employees' State Insurance (ESI) scheme in India is a social security and health insurance plan for employees. Recently, a notification has been issued regarding reduced contribution rates for employees and management.
🔑 Key Points:
- Employee Contribution: The reduced rate for employees is now 0.75% of the wages, down from the standard rate.
- Management Contribution: The revised rate for management is set at 3.25%, providing relief compared to the previous rate.
🔍 Practical Steps:
1. Downloading the ESI Notification:
- Visit the official ESI website or relevant government portal.
- Look for the section related to notifications or circulars.
- Download the specific notification regarding the reduced rate contribution.
2. Implementation for Payroll:
- Update your payroll system to reflect the revised contribution rates.
- Ensure that the changes are accurately applied for both employees and management.
3. Employee Communication:
- Notify all employees about the updated ESI contribution rates.
- Explain the changes clearly to avoid any confusion or queries.
4. Compliance Check:
- Verify that the reduced rates comply with the latest ESI regulations.
- Keep track of any further updates or changes in the contribution rates.
🔒 Legal Compliance:
- It's crucial to ensure that the reduced rates are in line with the official ESI notification and comply with the relevant labor laws in India.
🔗 For further details and official documentation, refer to the ESI website or contact your legal advisor for precise guidance.
From India, Gurugram
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ESI Notification - 2019 (1) CONTRIBUTION REDUCED TO 4% W.E.F JULY 19.pdf