This shall also lead to enhanced Ease of Doing Business. The Government of India through the Ministry of Labour and Employment decides the rate of contribution under the ESI Act. NEW DELHI: In yet another effort to enable job creation in the formal sector, the labour ministry is considering paying the employers’ share towards the health insurance scheme under the Employees’ State Insurance Corporation for all new recruits. LinkedIn. Share on Facebook . View Answer Answer: Rs 100 10 The employer’s share of contribution under the ESI Act is A 4.75 %. Presently, the rate of contribution is fixed at 6.5% of the wages with employers’ share being 4.75% and employees’ share being 1.75%. Under the Employees' State Insurance (ESI) Act 1948, employers and employees contribute their shares. Similarly, reduction in the share of contribution of employers will reduce the financial liability of the establishments leading to improved viability of these establishments. The employee share of contribution of esi is @ 1.75% and employer share of contribution of esi is @ 4.75%. Now, 3.25 per cent will be the employer’s share and 0.75 per cent the employee’s. B Rs 384.60. A Rs 100. Managed by ESIC under the ESI Act 1948, it is a self-financed insurance deposit that the workforce contributes to every month from their gross salary. Right to approach ESI Court against any action/decision of the Medical Board etc; Duties of Employer. RIGHTS OF EMPLOYERS lTo be represented on ESI Corporation, Medical Benefit Council and other important committees of the Corporation that may be formed from time to time. The Centre on Thursday reduced the rate of contribution under the ESI Act from 6.5 per cent to 4 per cent, with employers' contribution being reduced from 4.75 to 3.25 per cent and employees' contribution from 1.75 to 0.75 per cent.Reduced rates Reduced rates will be effective from 01.07.2019.This would benefit 3.6 crore employees and 12.85 lakhs employers. Also, non-payments, delayed or false payments under the ESI Act may attract imprisonment for a period extending up to 2 years and fine up to Rs 5,000. ESI scheme is a statutory medical insurance scheme governed by the The Employees State Insurance Act, 1948. Collection of ESI Contribution. Reduced rates will be effective from 01.07.2019.This would benefit 3.6 crore employees and 12.85 lakh employers. I hope that the above will satisfy your query. The Government of India has taken a historic decision to reduce the rate of contribution under the ESI Act from 6.5% to 4%(employers’ contribution being reduced from 4.75% to 3.25% and employees’ contribution being reduced from 1.75% to 0.75%). CS Lalit Rajput Updated on 03 January 2019. shreekanth.pr. The rate of contribution under the ESI Act is decided by the Government of India through Ministry of Labour and Employment. For a working-class employee in India, the ESI Act is an essential utility that works in their favour, while also being beneficial for sectors outside that of the working class. Employee Share of ESI Contn @1.75% on Gross Salary Earned only has to be deducted.The Employer should Contribute his share @4.75% on Gross Salary Earned. Email. The reduced rates are effective 1 July 2019. D 8.33 % . The employers shall not get the deduction benefit of such contributions and will end up paying income on it. This will be effective from July 1, 2019 — a move the government said “would benefit 36 million employees and 1.28 million employers”. 5. The Government of India has taken a historic decision to reduce the rate of contribution under the ESI Act from 6.5% to 4% (employers’ contribution being reduced from 4.75% to 3.25% and employees’ contribution be reduced from 1.75% to 0.75%). 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