Government reduced the rate of ESIC contribution from 6.5% to 4 % w.e.f. 01st July 2019
From India, Raikot
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5From India, Raikot
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Hi, Good News only. it is draft and News press advertisement only. GO will be passed officially. we can wait for that. Regards, P.Packiaraj
From India, Bangalore
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From India, Bangalore
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The Gazette notification (draft) in respect of revision in rates of ESI contribution is attached for ref.
From India, Bangalore
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From India, Bangalore
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Dear Kumar, as you mentioned this also Draft only. once this draft as passed bill, then GO will be pass. Regards, P.Packiaraj
From India, Bangalore
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From India, Bangalore
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Now it's official, the Gazette notification implementing the reduction of rates w.e.f.1.7.19 has been publihsed. Pl.see the same attached.
Pl.note the change in %age than what has been widely expected hitherto, there has been further reduction -
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.....in clause (a), for the words “equal to four and three-fourth per cent (4.3/4th %) of the
wages”, the words “equal to three and one-fourth per cent. of the wages (3.1/4th %) (i.e.3.15%) ” shall be substituted;
(b) in clause (b), for the words “equal to one and three-fourth per cent (1.3/4th%) of the
wages”, the words “equal to three-fourth per cent. of the wages (0.3/4th %) ” (i.e.0.75%)shall be
substituted.....
From India, Bangalore
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Pl.note the change in %age than what has been widely expected hitherto, there has been further reduction -
---
.....in clause (a), for the words “equal to four and three-fourth per cent (4.3/4th %) of the
wages”, the words “equal to three and one-fourth per cent. of the wages (3.1/4th %) (i.e.3.15%) ” shall be substituted;
(b) in clause (b), for the words “equal to one and three-fourth per cent (1.3/4th%) of the
wages”, the words “equal to three-fourth per cent. of the wages (0.3/4th %) ” (i.e.0.75%)shall be
substituted.....
From India, Bangalore
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Hi, ESI Contribution reduced Rate GO Attached for your information. Regards, P.Packiaraj
From India, Bangalore
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From India, Bangalore
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Please read the ESI Contribution rates effective from 1st July 2019 as follows:
Employers' contribution reduced from 4.3/4% (4.75%) to 3.1/4% (3.25%),
and Employees' contribution reduced from 1.3/4% (1.75%) to 3/4th% (0.75%).
We regret the error.
From India, Bangalore
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Employers' contribution reduced from 4.3/4% (4.75%) to 3.1/4% (3.25%),
and Employees' contribution reduced from 1.3/4% (1.75%) to 3/4th% (0.75%).
We regret the error.
From India, Bangalore
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Hi all,
ESIC has issued a circular regarding a delay in the registration of recruits for ESI coverage. The circular, titled "ESIC Circular On Delay In Registration Of Employee," addresses the concerns raised by employers regarding the recently introduced restrictions in the system for employee registration.
According to circular No. P-11/12/Misc./SST Misuse/2019-Rev.II, ESIC has approved a new process for employers in the system when conducting online registration for an employee whose date of appointment precedes the date of online registration by more than ten days. The ESIC portal will now accept employee registrations where the difference between the date of appointment and the date of registration exceeds 10 days. However, the system will prompt the employer to either accept or reject the specified conditions for registration.
If the employer accepts the conditions, an insurance number will be allocated, and a show cause notice will be sent to the registered email address of the employer. The employer must respond with the necessary documents or information within 15 days of receiving the Show Cause Notice, using the prescribed format and submitting it to the relevant RO/SRO.
In the event that the employer rejects the conditions, the system will guide the employer to adjust the date of appointment accordingly. For detailed information, please refer to the notification attached. Kindly see the enclosed copy of the circular for your reference.
Thank you.
From India, Bangalore
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ESIC has issued a circular regarding a delay in the registration of recruits for ESI coverage. The circular, titled "ESIC Circular On Delay In Registration Of Employee," addresses the concerns raised by employers regarding the recently introduced restrictions in the system for employee registration.
According to circular No. P-11/12/Misc./SST Misuse/2019-Rev.II, ESIC has approved a new process for employers in the system when conducting online registration for an employee whose date of appointment precedes the date of online registration by more than ten days. The ESIC portal will now accept employee registrations where the difference between the date of appointment and the date of registration exceeds 10 days. However, the system will prompt the employer to either accept or reject the specified conditions for registration.
If the employer accepts the conditions, an insurance number will be allocated, and a show cause notice will be sent to the registered email address of the employer. The employer must respond with the necessary documents or information within 15 days of receiving the Show Cause Notice, using the prescribed format and submitting it to the relevant RO/SRO.
In the event that the employer rejects the conditions, the system will guide the employer to adjust the date of appointment accordingly. For detailed information, please refer to the notification attached. Kindly see the enclosed copy of the circular for your reference.
Thank you.
From India, Bangalore
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I would like to know what all components of the wages are considered in the maximum limit of 21,000. If an employee is working on a 12-hour shift, will the maximum limit of 21,000 be calculated on the wages for 12 hours, which includes OT wages for 4 hours. Please confirm.
I can be reached at pk.kurian@in.issworld.com or pkkurian@gmail.com.
From India, Mumbai
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I can be reached at pk.kurian@in.issworld.com or pkkurian@gmail.com.
From India, Mumbai
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Dear PKKurian ji,
The name PKKurian carries significant identity, much like ISS.
You cannot hire a service from any individual for more than 8 hours in a day. The remaining 4 hours should be considered overtime and paid at double the rate. It is not permissible to require any individual to work 4 hours of overtime daily.
The wage calculation in your industry, based on a wage rate for 12 hours per day, is incorrect.
The ESI threshold limit of Rs. 21,000 applies to an 8-hour duty, inclusive of all monthly or bi-monthly allowances, except washing allowance in Maharashtra.
Thank you.
From India, Mumbai
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The name PKKurian carries significant identity, much like ISS.
You cannot hire a service from any individual for more than 8 hours in a day. The remaining 4 hours should be considered overtime and paid at double the rate. It is not permissible to require any individual to work 4 hours of overtime daily.
The wage calculation in your industry, based on a wage rate for 12 hours per day, is incorrect.
The ESI threshold limit of Rs. 21,000 applies to an 8-hour duty, inclusive of all monthly or bi-monthly allowances, except washing allowance in Maharashtra.
Thank you.
From India, Mumbai
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Interest rate cut to 8.55%, admin charges reduced to 0.5%.jpg
ESI Gazette Notification-Co ntribution Rate Reduced From 4.75 to 3.15 Percentage.pdf