The government has reduced the total rate of contribution made by workers and employers towards the Employees’ State Insurance (ESI) scheme from 6.5% to 4% for the first time in over two decades.
At present, nearly 4.75% of a worker’s monthly salary goes towards ESI as the employer’s contribution and 1.75% of the income is the employee’s share at present.
Now, 3.25% will be the employer’s share and 0.75% the employee’s.
This will be effective from July 1, 2019.
Source: Business Standard