Employee State Insurance (ESI) contribution reduced w.e.f July 1, 2019

Purva Marwaha - 27/06/19

Employee State Insurance (ESI) contribution reduced w.e.f July 1, 2019

ESI, is a social benefit that seeks to provide certain benefits to employees in case of sickness, maternity and employment injury (via the Employees’ State Insurance Act, 1948). Via an amendment in June 2019, the Ministry of Labour and Employment has amended the Employees’ State Insurance (Central) Rules, 1950 to bring effect to the Employees’ State Insurance (Central) Amendment Rules, 2019: to reduce the rate of contribution from 6.5% to 4%. The employers’ contribution is being reduced from 4.75% to 3.25% and employees’ contribution is being reduced from 1.75% to 0.75%. This amendment shall come into force from 1st July, 2019 

Source:  Gazette Notification No.G.S.R. 423 (E) dated 13th June, 2019, http://egazette.nic.in/WriteReadData/2019/205715.pdf

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