The government has now cut down the rate of contribution under Employee’s State Insurance Corporation (ESIC Act) from 6.5% to 4%.
The new rate will be effective from 1st July’2019 onwards. The new rate for employer contribution will be 3.25% and for employee contribution, it will be 0.75%. This new rate will be applicable from July 2019 salary process for which the returns filing due date is 15th August’ 2019.
The ESIC act provides medical, cash, maternity, disability and dependent benefits to the Insured Persons. The ESIC Act is administered by the Employees’ State Insurance Corporation (ESIC). Benefits provided under the ESI Act are funded by the contributions made by the employers and the employees.
|Contribution Type||Old Rate||New Rate|
(wef 1st July’ 2019)