TaxTMI 
TaxTMI 
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?
ESI Limits and rates thereon
28 Jan 2017 
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ESI contribution rates under review: proposal to lower employer and employee shares during scheme expansion.
The document notes an elevated wage threshold for ESI deduction effective 1 January 2017 and records no formal amendment to existing contribution rates; it also describes a government proposal to temporarily lower employer and employee contribution shares in areas where the scheme is being newly established to account for limited initial medical infrastructure, while confirming that workers below the entitlement wage remain eligible for medical and related benefits and that the Employees' State Insurance regime applies to factories with ten or more workers and specified other establishments. (AI Summary)
The document notes an elevated wage threshold for ESI deduction effective 1 January 2017 and records no formal amendment to existing contribution rates; it also describes a government proposal to temporarily lower employer and employee contribution shares in areas where the scheme is being newly established to account for limited initial medical infrastructure, while confirming that workers below the entitlement wage remain eligible for medical and related benefits and that the Employees' State Insurance regime applies to factories with ten or more workers and specified other establishments. (AI Summary)