ESI Contribution Rate Reduced by Central Government for both employee and Employers. Under the Revised ESI Contribution Rate now employee has to pay 0.75% instead of 1.75% and Employers contribution will become 3.25% instead of 4.25 %. In Simple Words we may say that Total ESI Contribution Rate will become 4 % in place of 6%. The Reduced ESI (Employees State Insurance) Contribution Rate will take effect from Date 1st July 2019. Mr. Santosh Kumar Gangwar the minister of Labour & employment said that this scheme would benefit 3.6 crore employees and 12.85 lakh employers.
Revised ESI Contribution Rate 2019
The reduction in the Employees State Insurance (ESI) Act will definitely provide the consequential Relief to the workers and Industries. The Expectation is that Revised ESI Contribution Rate will provide total Rs 9,000 crore for the industry. This Employees State Insurance (ESI) Act provides the security to the employees and their Families. Till now under the Employees State Insurance more 2 Crore employees and their 7.5 crore Families members has been covered.
|Type||Old Contribution Percentage||New Contribution Percentage|
Objective of ESI Contribution Rate Reduced
The Objective of ESI Contribution Scheme is to Provide Social Protection to workers and their Dependent. Under the ESI Scheme more 150 hospitals and 15000 dispensaries are working.
Highlights of ESI Contribution Rate Reduced
|Scheme Name||Employees State Insurance|
|Ministry||Ministry of labour & Employment|
|Implement of Revised Rule||1st July 2019|
|Beneficiary||Workers who Wage is Upto Rs 21000|
|Revised ESI Contribution Rate||4%|
|Objective||To Provide Better Social Protection|
|Type of Scheme||Central Govt. Scheme|
What is ESI Contribution Scheme?
ESI Scheme is Run by Government of India and it is a self financed integrated social security scheme tailored to provide Social Protection to workers and their dependent. The employees whose monthly salary is upto Rs 21000 is cover under the ESI Contribution Act and the factories, industries etc under which 10 or more workers works have to register under ESI Contribution Act.
Applicability of ESI Contribution
- ESI ACT has been applied in Phases in whole over the India and now it is applicable mostly areas of the Country.
- This Employees State Insurance Scheme is applied on all type of shops, Establishments, Factories under which 10 or more than 10 workers works and it is specified by State and central Government.
Benefits of ESI Contribution ACT
- In case of employee Sickness ESI Provides Free Treatments in more 150 hospitals
- Scheme provide Salary to Women in the period of Maternity
- Cash incentive are given in case of employee Death
- In case Disablement ESI Contribution Scheme Provide Partial wages to the employee.
- Financial support is given to the unemployed Worker until he gets a new job.
Silent Features of ESI Act
- ESI Act provides for medical, cash, maternity, disability and dependent benefits to employees drawing a salary of up to Rs 21,000 per month.
- The ESI Act applies to factories with 10 or more workers and it is also applicable to shops, hotels, restaurants, cinemas and road transport undertakings.
Effect of Revised ESI Contribution Rate
The New Revised ESI Contribution Rate will reduce the burden of contribution from employee and employers but there will be no change under the benefits and incentives of the ESI. The New Rules of Contribution will decrease 2% amount. If you want to know more about the Scheme then visit the official website@ www.esic.nic.in.