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'description' => '<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">The Union Ministry of Labour & Employment has taken decision to reduce the rate of contribution under the Employees' State Insurance (ESI) Act from 6.5</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif""> to 4</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">. It has reduced employers’ contribution from 4.75</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif""> to 3.25</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif""> and employees’ contribution from 1.75</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif""> to 0.75</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">. The reduced rates will be effective from 1 July 2019.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">Impact</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">The reduction of ESI rates will benefit 3.6 crore employees and 12.85 lakh employers. It will also bring about substantial relief to workers by increasing their takehome salary as well as reduce the financial burden of employer. It will further facilitate enrollment of workers under the ESI scheme and bring more and more workforce into the formal sector. The reduction in the share of contribution of employers will reduce the financial liability of their establishments and lead to improved viability of these establishments and further enhance ease of doing business</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">Employees’ State Insurance Act 1948 (ESI Act)</span></span></strong></span></span></p>
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<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">It provides for medical, cash, maternity, disability and dependent benefitsto the Insured Persons under the Act. It is administered by Employees’ State Insurance Corporation (ESIC). </span></span></span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">Benefits provided under it are funded by the contributions made by employers and employees. Under Both employers and employees contribute their shares respectively. </span></span></span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">Union Government through Ministry of Labour and Employment decides the rate of contribution under the ESI Act. </span></span></span></span></li>
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'tag' => 'Industries',
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'id' => (int) 1442,
'title' => 'Government Cuts Employees' State Insurance Contribution Rate',
'description' => '<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">The Union Ministry of Labour & Employment has taken decision to reduce the rate of contribution under the Employees' State Insurance (ESI) Act from 6.5</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif""> to 4</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">. It has reduced employers’ contribution from 4.75</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif""> to 3.25</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif""> and employees’ contribution from 1.75</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif""> to 0.75</span></span><span style="font-size:9.0pt"><span style="font-family:"Times New Roman","serif"">%</span></span><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">. The reduced rates will be effective from 1 July 2019.</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">Impact</span></span></strong></span></span></p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">The reduction of ESI rates will benefit 3.6 crore employees and 12.85 lakh employers. It will also bring about substantial relief to workers by increasing their takehome salary as well as reduce the financial burden of employer. It will further facilitate enrollment of workers under the ESI scheme and bring more and more workforce into the formal sector. The reduction in the share of contribution of employers will reduce the financial liability of their establishments and lead to improved viability of these establishments and further enhance ease of doing business</span></span></span></span></p>
<p style="margin-left:0in; margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">Employees’ State Insurance Act 1948 (ESI Act)</span></span></strong></span></span></p>
<ul>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">It provides for medical, cash, maternity, disability and dependent benefitsto the Insured Persons under the Act. It is administered by Employees’ State Insurance Corporation (ESIC). </span></span></span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">Benefits provided under it are funded by the contributions made by employers and employees. Under Both employers and employees contribute their shares respectively. </span></span></span></span></li>
<li><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><span style="font-size:9.0pt"><span style="font-family:"Quicksand","serif"">Union Government through Ministry of Labour and Employment decides the rate of contribution under the ESI Act. </span></span></span></span></li>
</ul>
',
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'posturl' => 'employees-state-insurance-contribution-rate',
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'metatitle' => 'Govt Cuts Employees' State Insurance Contribution Rate',
'metakeyword' => 'he Union Ministry of Labour & Employment has taken decision to reduce the rate of contribution under the Employees' State Insurance (ESI) Act from 6.5% to 4%.',
'metadescription' => 'he Union Ministry of Labour & Employment has taken decision to reduce the rate of contribution under the Employees' State Insurance (ESI) Act from 6.5% to 4%.',
'author' => 'Nikhil Paigude',
'downlaodpdf' => 'https://www.mediafire.com/file/g4u3g6r8igghv96/Government_Cuts.pdf/file',
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