ESIC : Reduction in Charges from 6.5% to 4%

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Government has reduced ESIC deduction and contribution effective July 1, 2019

FormExisting RateNew Rate Effective
July 1, 2019
Employees Contribution1.75%0.75%
Employers Contribution4.75%3.25%

As per the Press Release , this step is one more step in the direction of ease of doing business in india. The reduction will benefit employees and will make the scheme more viable for employers

The reduction will be of immediate help to 12.85 Lakh existing employees covered under the scheme by 12.85 Lakh employers