ESI Limits and rates thereon

[Ashwani Rustagi]

Effective from 01-January-2017, for deduction of ESI, salary limit has been increased from INR 15,000/- to INR 21,000/-. There was also proposal for reduction ESI rate from existing rate of 1.75% for employee and 4.75% for employers. Is there any update on this?

AI Summary

ESI Salary Limit Raised to INR 21,000; Proposal to Cut Employer Contribution to 4% in New Medical Areas Effective January 1, 2017, the salary limit for ESI deductions increased from INR 15,000 to INR 21,000. The current ESI contribution rates remain at 1.75% for employees and 4.75% for employers, totaling 6.5%. There is a proposal to reduce the employer's contribution to 4% in areas where new medical facilities are planned. This reduction aims to expand ESI coverage to all 683 districts by March next year. Concerns were raised about the adequacy of medical facilities and suggestions were made to collaborate with private hospitals to ensure comprehensive medical treatment for workers.