Centre Reduces Rate of Contribution Under ESI Scheme From 6.5% to 4%
- The government has reduced the total rate of contribution towards the Employees’ State Insurance scheme to 4% from the earlier 6.5% under the Employees’ State Insurance Act (ESI).
- Hence, the employers’ contribution has been reduced from 4.75% to 3.25% and employees’ contribution has been slashed from 1.75% to 0.75% of their salary.
- The reduced rates will be effective from 1 July.