A new rule is introduced under the Employee State Insurance Scheme which states that in the areas where the scheme is implemented for the first time, the employer’s contribution and employee’s contribution would be as follows for the initial period of 24 months from the day it’s been implemented:

  1. Employer: 3% of wages payable to the employee, such sum rounded to next higher rupee.
  2. Employee: 1% of wages payable to employee, such sum rounded to next higher rupee

After completion of the aforesaid 24 months, the rate of contribution would be the same as existing i.e. (4.75% in respect of employer and 1.75% in respect of employee).

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