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Substantial Rise in the Number of Employees Under ESI Scheme

July 10, 2019: The number of employees being brought under the ESI Scheme and the number of employers is given at the table:


Sr. No.

Year

No. of Employees

(in Lakhs)

No. of Employers

1.

2015-16

189.21

783786

2.

2016-17

293.21

898138

3.

2017-18

311.18

1033730

4.

2018-19

Yet to be assessed

Yet to be assessed


Proposal for rationalisation of ESI contribution rates was placed before the ESI Corporation in its 173rd Meeting held on 16.02.2018 where it was decided to constitute a Sub-Committee consisting of Employers’ and Employees’ representatives to examine the issue.

The Committee recommended reduction in rate of ESI contribution to 5 per cent (Employers’ contribution @ 4 per cent and Employees’ contribution @ 1 per cent). The report of the Sub-Committee was placed before the Corporation in its 175th Meeting held on 18th September, 2018.

The Corporation also authorised the Chairman, ESIC to consider various suggestions received and take a final decision in this regard.  Thereafter, keeping in view the overall financial position of the Corporation, the Chairman, ESIC Corporation /Minister, Labour and Employment decided to further reduce the rate of contribution to 4 per cent (Employers’ contribution @ 3.25 per cent and Employees’ contribution @ 0.75 per cent) and accordingly notification has been issued by the Government.  The reduced rate is effective from 1st July, 2019. 

This information was given by Shri Santosh Kumar Gangwar, Minister of State (I/C) for Labour and Employment in written reply to a question in Rajya Sabha today.



Source: Ministry of Labour & Employment

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