E.S.I. Employees of an eligible organisation are protected against financial distress arising out of sickness, disablement and death due to employment injury. The relevant period of benefit corresponding to each period of contribution commences three months after the end of that contribution period i.e. Reports: Accident report in Form 12 in case any accident takes place, to the notice of the Accident. Such assistance makes up for the loss of salary for their incapacity to work and provide medical care to them as well as their family members. The amount of contribution (Employee's and Employer's share) is to be deposited with the authorized bank (State Bank Of India) through Online Generated Challan, on or before 15th day of the Succeeding month, of month following the calendar month (effective for contribution payable for the month of June, 2017 onwards). The scheme provides full medical care to the employee registered under the ESI Act, 1948 during the period of … CS Lalit Rajput  Under the ESI Act, employers and employees both contribute their shares respectively. Reduced the salary contribution of industrial workers who are eligible for healthcare benefits under the Employees’ State Insurance Act (ESI) Act from 6.5% to 4%. These rates are subject to revision from time to time. 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%). • Non-seasonal and non-power using factories and establishments employing twenty(20) or more persons The decision will benefit 36 million workers and 1.28 million employers. Dear Member, ESI is the deduction on Gross Salary. Employees Provident Fund Act, 1952. The ESI corporation has launched a new Yojna for the employees covered under the ESI scheme. CS Lalit Rajput, You can also submit your article by sending to article@caclubindia.com, GST certification shreekanth.pr. 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%. • Sec 1(5), the scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transports undertakings and newspaper establishments employing 20 or more persons. Reduction in the share of contribution of employers will reduce the financial liability of the establishments, leading to improved viability of these establishments. 3. 23,000 from July, 2019. Professional Course, Course on GST Exports Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. I hope that the above will satisfy your query. 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%. Note: Registration Certificate or License issued under Shops and Establishment Acts or Factories Act. Employees of covered units and estab­lishments drawing wages upto Rs. Under the ESI Act, employers and employees, both contribute their shares respectively. Professional Course, Online Excel Course It is also expected that reduction in rate of ESI contribution shall lead to improved compliance oflaw. The employer’s share of contribution under the ESI Act is _____ (a) 12 % (b) 8.33 % (c)1.75 % (d) 4.75 %) Employees who are getting a daily average wages up to _____ are exempted from contributing employees’ share of ESI contribution. 15,000/- per month to Rs. ESI contribution rates The ESI contribution payable to the ESI corporation comprises employer’s and employee’s contribution at specified rates. The Government of India through Ministry of Labour and Employment decides the rate of contribution under the ESI Act. The decision will benefit 36 million workers and 1.28 million employers. It is also committed to improve the quality of medical services & other benefits being provided under the ESI scheme. OffencesIf any employer -(a) Fails to pay any contribution payable by him under the Act(b) Deducts from the wages of an employee the employers contributions(c) Fails to submit any return required by the regulations, or makes a false return He would be punished with imprisonment upto 1 year or with fine upto Rs. It is a self-financed social security scheme designed to protect employees covered under the ESI act. Note:- The notification is awaited. The ESI Act is administered by Employees’ State Insurance Corporation (ESIC). The employee share of contribution of esi is @ 1.75% and employer share of contribution of esi is @ 4.75%. 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