GOVERNMENT REDUCES THE RATE OF EMPLOYEES STATE INSURANCE (ESI) CONTRIBUTION

Published On: 18/06/2019

Authors:

Avik Biswas
Under the Employees State Insurance Act, 1946, the contribution, at a specified rate, payable to the ESI Corporation in respect of an employee comprises both the employer and employee contributions. Until recently, the contribution rate was 1.75% and 4.75% of the wages, by an employee and employer, respectively. The Government of India, after consultation with the ESI Corporation, has made amendments to this rate of contribution. INDUSLAW's Manishi Pathak, Avik Biswas and Poonam Das discuss.