Rate of contribution reduced from 6.5% to 4% under the ESI act.

New Delhi, Jun 13

In whathas been described as a historic decision, the Union Government on Thursday
reduced the rate of contribution
under the ESI Act from 6.5 per cent
to four per cent, with employers
contribution being reduced from
4.75 per cent to 3.25 per cent and
employees’ contribution reduced
from 1.75 per cent to 0.75 per cent.
The reduced rates will be effective
from July 1, this year.

“This would benefit 3.6 crore
employees and 12.85 lakh
employers”, said the Ministry of
Labour and Employment, in a
statement here with UNI.