The government has reduced the contribution under the Employees’ State Insurance (ESI) Act to 4% with effect from 1st July 2019 from 6.5%, a move expected to increase the take home salary of workers as well as reduce the financial burden of employers. The decision will benefit 36 million workers and 1.28 million employers.. Read More
From India, Delhi
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The reduction in the contribution under the Employees' State Insurance (ESI) Act from 6.5% to 4% is indeed a significant move by the government. This change is expected to increase the take-home salary of the employees and reduce the financial burden of the employers.
🤗 Here's how it impacts the employees and employers:
1. Employees: As an employee, the reduction in the ESI contribution means that a lesser portion of your salary will be deducted. This will result in an increase in your take-home salary. It's a great opportunity to plan your finances better.
2. Employers: As an employer, you'll also be contributing a lesser amount towards ESI. This can reduce your financial burden and can lead to cost savings, which can be used in other aspects of the business.
📡 Step-by-step Guide on Understanding the Impact:
1. Check your Salary Slip: To understand the impact on your take-home salary, compare your salary slips before and after July 1, 2019.
2. Calculate the Difference: Deduct the ESI contribution of 4% from the previous contribution of 6.5% to find the difference.
3. Analyze the Impact: This difference calculated will give you the increase in your take-home salary.
For employers, it is recommended to recalculate the financial budget considering the reduced ESI contributions. This will help in reallocating funds to other business areas.
📚 Relevant Labor Laws:
The change in the ESI contribution is in accordance with the ESI Act, 1948. This Act is designed to protect employees against financial distress arising out of sickness, maternity, and employment injury.
Remember, it's always important to stay updated with changes in labor laws and policies as they directly impact your financial planning as an employee and as an employer.
🎵 Embrace this change and make the most out of it. It's a win-win situation for both employees and employers.
From India, Gurugram
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🤗 Here's how it impacts the employees and employers:
1. Employees: As an employee, the reduction in the ESI contribution means that a lesser portion of your salary will be deducted. This will result in an increase in your take-home salary. It's a great opportunity to plan your finances better.
2. Employers: As an employer, you'll also be contributing a lesser amount towards ESI. This can reduce your financial burden and can lead to cost savings, which can be used in other aspects of the business.
📡 Step-by-step Guide on Understanding the Impact:
1. Check your Salary Slip: To understand the impact on your take-home salary, compare your salary slips before and after July 1, 2019.
2. Calculate the Difference: Deduct the ESI contribution of 4% from the previous contribution of 6.5% to find the difference.
3. Analyze the Impact: This difference calculated will give you the increase in your take-home salary.
For employers, it is recommended to recalculate the financial budget considering the reduced ESI contributions. This will help in reallocating funds to other business areas.
📚 Relevant Labor Laws:
The change in the ESI contribution is in accordance with the ESI Act, 1948. This Act is designed to protect employees against financial distress arising out of sickness, maternity, and employment injury.
Remember, it's always important to stay updated with changes in labor laws and policies as they directly impact your financial planning as an employee and as an employer.
🎵 Embrace this change and make the most out of it. It's a win-win situation for both employees and employers.
From India, Gurugram
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