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Ministry of Labour and Employment has reduced contribution of employers and employees under the Employees’ State Insurance Act (“ESI”) to 4% from existing 6.5%. Now, the employers will contribute 3.25% (1.5% less than existing 4.75%) of employees’ salary and employees will contribute 0.75 % (1% less than existing 1.75%) of their salary. The reduced rates are effective from 01 July 2019.