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What is the contribution payable by the employer and the employee under the Act?

The contribution payable by the employer is 10 per cent of the wages of an employee. The Central Government may increase it to 12 per cent in respect of any establishment or class of establishment. However in the case of:-

(i) establishment in which less than 20 persons are employed;
(ii) sick industrial company;
(iii) establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth; establishment in the -
(A) Jute Industry
(B) Beedi Industry
(C) Brick Industry
(D) Coir industry other than the spinning sector
(E) Gaur Gum Factories.

the contribution payable by the employer is 10 per cent of the wages of an employee. The contribution payable by the employee is equal to the contribution payable by the employer in respect of such employee.


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