ESI Contribution Rate Reduced From 6.5 Percentage To 4 Percentage

Employee’s State Insurance Corporation ( Government, of India) has reduced the monthly rate of contribution under the ESIC Act from 6.5% to 4% .

Employer Contribution Reduced from 4.75%  to  3.25%    and

Employees contribution Reduced from 1.75% to 0.75%

Total Contribution = 4% and the reduced rate will be applicable   w.e.f. 01.07.2019.

The deduction of ESI contribution at reduced rate will be applicable from the salary of July-2019 paid in August -2019.

The Gazette notification is attached for your information and necessary action.

Advice: You are advised to make the ESI deduction at above applicable rates from the salary of July-2019 paid in August -2019.

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