The Ministry of Labour and Employment has rolled out the Employees’ State Insurance (Central) (Amendment) Rules, 2019 (“Draft Amendment”), to amend the Employees’ State Insurance (Central) Rules, 1950 (“Principal Rules”).
The Draft Amendment proposes to reduce the Rate of Contribution (for both employer and employee) under Rule 51 of the Principal Rules.
The comparison of the existing rates against the proposed amendment has been provided in the table below:
| Principal Rules | Draft Amendment |
| Rule 51: Rate of contribution
The amount of contribution for a wage period shall be in respect of:
(a) employer’s contribution, a sum (rounded to the next higher rupee) equal to four and three fourth per cent of the wagespayable to an employee; and
(b) employee’s contribution, a sum (rounded to the next higher rupee) equal to one and three fourth per cent of the wagespayable to an employee.
|
Rule 51: Rate of contribution
The amount of contribution for a wage period shall be in respect of:
(a) employer’s contribution, a sum (rounded to the next higher rupee)equal to four percent of the wages to an employee; and
(b) employee’s contribution, a sum (rounded to the next higher rupee)equal to one percent of the wages payable to an employee. |
Objections and suggestions on the Draft Amendment, may be addressed to Shri S. K Singh, Under Secretary, Ministry of Labour and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001 within 15th March 2019.
Source: Ministry of Labour and Employment
