Ministry of Labour and Employment has issued Gazette Notification G.S.R 121 (E) dated 15/02/2019 (Notification attached) notifying Draft Rules proposing to reduce Employee Contribution for ESIC to 1% from 1.75% and Employer Contribution to 4% from 4.75 %.
Currently, 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, the Central Govt. is planning to lower the employee’s ESI contribution rate to 1% and that of employer’s to 4%. Draft Rules published on 15-02-2019, for information of all persons likely to be affected.
They shall come into force on the date of its final publication in the Official Gazette.
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. For more details please refer notification.
Proposed ESIC Contribution Rate
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Please inform when it is published in Govt. Gazette. I think deduction in Feb 2019 salary will be at the present rate. Please advise.