Proposed Revised ESI Contribution Rates (Employer 4%, Employee 1%)

Ministry of Labour and Employment, Govt. of India has notified the draft of proposed revised/ reduced rates of ESI Contribution in respect of Employer Contribution (existing rate 4.75% – proposed rate 4%) and Employee Contribution (existing rate 1.75% – proposed rate 1%), for comments from stakeholders within 30 days. After reviewing the objections and/ or suggestions, if any, the Govt. will later notify the final date of change in the rates of ESI Contribution through a separate notification.

G.S.R. 121(E).- The following draft of certain rules further to amend the Employees’ State Insurance (Central) Rules, 1950 which the Central Government, after consultation with the Employees’ State Insurance Corporation, proposes to make in exercise of the powers conferred by Section 95 of the Employees’ State Insurance Act, 1948 (34 of 1948), is hereby published as required by sub-section (1) of the said Section, for information of all persons likely to be affected thereby and notice is hereby given that the said draft rules will be taken into consideration after thirty days from the date of publication in the Official Gazette.

Any objection or suggestion, which may be received from any person in respect of the said draft rules within the period specified above, will be considered by the Central Government.

DRAFT RULES 

1. (i) These rules may be called the Employees’ State Insurance (Central) (Amendment) Rules, 2019. (ii) They shall come into force on the date of its final publication in the Official Gazette.

2. In Rule 51 of the Employees’ State Insurance (Central) Rules, 1950, the following amendment shall be made :—

(a) In Rule 51(a) for the words “equal to four and three fourth percent of the wages”, the words “equal to four percent of the wages” shall be substituted.

(b) In Rule 51(b), for the words “equal to one and three fourth percent of the wages”, the words “equal to one percent of the wages” shall be substituted.

Note: The principal rules were published in the Gazette of India, Part II, Section 3, Sub-section (i) vide notification number S.R.O. 212 dated the 22nd June, 1950.

Proposed Revised Rates of ESI Contribution (effective date yet to be notified)

In line with the proposed amendment/ reduction in ESI Contribution notified by the Govt., the revised rates of contribution by Employer and Employees (effective date yet to be notified), are as under::