The Employees’ State Insurance (Central) Amendment Rules, 2019

The Ministry of Labour and Employment vide notification dated 6th September 2019 has amended Rule 52 of Employees’ State Insurance (Central) Rules, 1950. By this notification, the average daily wage limit for exemption from payment of employee’s contribution has been increased to Rs.176 from Rs.137.
The ESI Scheme is financed by contributions from employers and employees a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid in respect of the employees in every wage period. Employees in receipt of a daily average wage up-to Rs.176/- are exempted from payment of contribution. However, the employers will contribute their own share in respect of these employees. Thus, as per new Rule 52, an employee is not liable to pay any contribution towards ESI Scheme if his average daily wages during a wage period is Rs. 176 or less.



MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 6th September, 2019

G.S.R. 638(E).—Whereas, a draft containing certain rules further to amend the Employees’ State Insurance (Central) Rules, 1950, were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i), vide number G.S.R. 471(E), dated the 3rd July, 2019 as required by sub-section (1) of section 95 of the Employees’ State Insurance Act, 1948 (34 of 1948), inviting objections and suggestions from all persons likely to be affected thereby before the expiry of a period of thirty days from the date on which the copies of the Official Gazette containing the said notification was published were made available to public;

And whereas, the copies of the said Official Gazette were made available to the public on the 4th July, 2019;

And whereas, no objection or suggestion has been received from any person in respect of the said draft rules within the period specified above for consideration by the Central Government;

Now, therefore, in exercise of the powers conferred by section 95 of the Employees’ State Insurance Act, 1948, the Central Government, after consultation with the Employees’ State Insurance Corporation, hereby makes the following rules further to amend the Employees’ State Insurance (Central) Rules, 1950, namely:—

1. (1) These rules may be called the Employees’ State Insurance (Central) Amendment Rules, 2019.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Employees’ State Insurance (Central) Rules, 1950, in rule 52, for the words “rupees one hundred thirty seven”, the words “rupees one hundred seventy six” shall be substituted.

[F. No. S-38012/01/2015-SS-I]

VIBHA BHALLA, Jt. Secy.

Note: The principal rules were published in the Gazette of India, Part II, Section 3, Sub-section (i) vide notification number S.R.O. 212 dated the 22nd June, 1950 and was last amended vide notification number G.S.R. 599(E), dated the 26th August, 2019.



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