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REDUCTION OF EMPLOYEES STATE INSURANCE CONTRIBUTION TO 4% FROM 6.5% BY CENTRAL GOVERNMENT

    The Central Government on Thursday, in exercise of the power conferred by Section 95 of the Act, made certain amendment to the Employees’ State Insurance (Central) Rules, 1950. The amendment cut the healthcare benefit under the Employees’ State Insurance Act to 4% from 6.5% and this was the first reduction in 22 years. According to Ministry of Labour and Employment, the health care benefit under the Act shall remain the same but the employee contribution reduced from 1.75% to 0.75%, while the employer contribution had reduced from 4.75% to 3.25%. The following reduction will be effective from July 1 and the amendment made...

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