Tag Archives: Ministry of Labour and Employment

ESI Contribution Reduction w.e.f July 1, 2019

Employees’ State Insurance Act, 1948 (“ESI”), is a social benefit legislation, enacted to provide certain benefits to employees in case of sickness, maternity and employment injury.

Amended Position:

The Ministry of Labour and Employment vide its Gazette Notification No.G.S.R. 423 (E) dated 13th June, 2019 has amended the Employees’ State Insurance (Central) Rules, 1950. The amendment rules i.e. the Employees’ State Insurance (Central) Amendment Rules, 2019 shall come into force from 1st July, 2019 and has made the following amendments:

  • The rate of contribution under the amended rules is reduced from 6.5% to 4% i.e., the employers’ contribution is being reduced from 4.75% to 3.25% and employees’ contribution is being reduced from 1.75% to 0.75%.

A tabular form has been depicted for easier reference:

Rate of contribution (in percentage) under Employees’ State Insurance Rules
Existing Rate till June 30, 2019 Revised Rate from July 1, 2019
Employers’ contribution 4.75 3.25
Employees’ contribution 1.75 0.75
Total contribution 6.5 4

Source: http://egazette.nic.in/WriteReadData/2019/205715.pdf

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REGULATORY UPDATE: MINISTRY OF LABOR AND EMPLOYMENT-AMENDMENT TO MATERNITY BENEFIT ACT, 1961.

The Ministry of Labour and Employment vide its order dated 17th November, 2017 amended the Maternity Benefit Act, 1961.

Highlights:

  • It is mandatory for an establishment to provide for crèche facilities where more than 50 or more employees are being employed.
  • Earlier, Section 48 of the Factories Act, 1948 mandated crèche facilities for factory establishments with 30 or more women workers, the Maternity Benefit Act has extended the same for all employers employing 50 or more persons.

Source:

http://labour.gov.in/sites/default/files/Reg.%20Creche%20Rules%20.pdf