ESIC: Employees & Employers Contribution rate reduced to 1% & 3%

EMPLOYEES’ STATE INSURANCE CORPORATION

PANCHIDEEP BHAWAN CIG ROAD, NEW DELHI – 110002.
(Website address: www.esic.nic.in)

No.: I-11/15/10/2016-ICT

Dated: 15-12-2016

To

The Regional Directors/Directors/Joint Directors In-charge,

All Regional Offices/Sub Regional Offices,

Sub.: Reduced rate of contribution under amended Rule 51 B of ESI (Central) Rules, 1950

Dear Sir/Madam,

Vide the notification dated 06-10-2016 the Rule 51 of EST (Central) Rules, 1950 has been amended by inserting Rule 51B whereby the rate of Employee’s contribution has been reduced to 1% and the Employer’s contribution has been reduced to 3% of the wages in the first time implemented areas.

ICT Division has taken up the matter for necessary modification in the application to accommodate the calculation of the contribution at the reduced rates in the first time implemented areas. However, due to technical reasons the modification in the software is taking some time.

Now it has been decided that, till the modification is made in the application, all the Employers, who arc eligible for the reduced rate of contribution, may be advised to file the monthly contribution details as usual. However, they may work out the contribution payable by them at the reduced rate and the challan may be made only for the contribution payable at the reduced rates and pay the same. Such Employers may be advised to inform the Regional Offices/Sub Regional Offices regarding their eligibility for reduced rate of contribution which may be examined by the Regional Office/Sub Regional Office and no defaulter action may be taken against such Employers. The code number of such Employers will appear in the defaulter list generated by system which may be dropped by the Regional Office/Sub Regional Office and a record may he kept of the same.

This may be given wide publicity among the employer.

Yours faithfully,

(Sanjay Sinha)

Director (ICT)