Min of Labour proposes reduction in employee & employer contribution rate for ESIC
New Delhi, Feb 20 (KNN) The Central Government is planning to reduce Employees' State Insurance Corporation (ESIC) contribution rate to 1% for employees and 4% for employers.
In a notification, Ministry of Labour and Employment notified draft rules proposing to reduce employee contribution for ESIC to 1% and employer contribution to 4%.
As per the Section 51 in the Employees’ State Insurance (Central) Rules 1950, the employee’s ESI contribution rate is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period.
Now, Ministry is making amendments in the Employees’ State Insurance (Central) Rules 1950 and as per draft rules, it has proposed to reduce employee contribution for ESIC to 1% from 1.75% and employer contribution to 4% from 4.75 %.
Any objection or suggestion, which may be received from any person in respect of the said draft rules within thirty days, will be considered by the Central Government, said the Ministry. (KNN/YV)