Rate of Contribution where ESI Act is implemented for first time: Notified

By | October 13, 2016

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 6th October, 2016

G.S.R. 959(E).—Whereas certain draft rules further to amend the Employees’ State Insurance (Central) Rules, 1950 were published, as required by sub-section (1) of section 95 of the Employees’ State Insurance Act, 1948 (34 of 1948), in the Gazette of India, Extraordinary, Part-II, section 3, sub-section (i) vide number G.S.R. 720(E), dated 25th July, 2016 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 in which the said notification was published, were made available to the public;

And whereas, the copies of the said Official Gazette were made available to the public on the 25th July, 2016;

And whereas, objections and suggestions received from persons likely to be affected thereby, have been considered by the Central Government;

Now, therefore, in exercise of the powers conferred by sub-section (2) of section 95 of the said Act, 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) Second Amendment Rules, 2016.

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

2. In the Employees’ State Insurance (Central) Rules, 1950,-

(a) rule “51-(A)” shall be renumbered as rule “51A”;

(b) after sub-rule (2) of rule 51A as so renumbered, the following new rule shall be inserted, namely:- “51B. In areas where the Act is implemented for the first time, the rates of employer’s and employee’s contribution for the initial twenty-four months from such date of implementation, shall be as under:-

(a) Employer’s contribution – A sum (rounded to the next higher rupee) equal to three per cent of the wages payable to an employee; and

(b) Employee’s contribution – A sum (rounded to next higher rupee) equal to one per cent of the wages payable to an employee:

Provided that on completion of twenty-four months from the date of implementation of the Act, the rate of contribution as provided under rule 51 shall be applicable.”

[F. No. S-38012/01/2016-SS-I]

RAJEEV ARORA, Jt. Secy.

Note : The principal rules were published in the Gazette of India vide notification number S.R.O. 212 dated the 22nd June, 1950 and lastly amended vide notification number G.S.R. 598(E) dated the 14th June, 2016.

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