ESI contribution rates cut, firms and staff stand to gain : TOI, dated 14.06.2019 (Mumbai Edition)

ESI contribution rates cut, firms and staff stand to gain : TOI, dated 14.06.2019 (Mumbai Edition)
Friday, June 14, 2019
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Dear all,

Your association SIMA is sharing herewith articles published by Times of India, Mumbai Edition on dated 14.06.2019.

1.  ESI contribution rates cut, firms & staff stand to gain : TOI, dated 14.06.2019
(Reduction Aimed At Improving Ease Of Doing Business)

The Centre on Thursday announced a reduction in the contribution by employers and companies for the health insurance plan under the Employees State Insurance (ESI) plan, a move expected to benefit 3.6 crore employees and nearly 13 lakh employers.

The government cut the rate of contribution under the ESI Act from 6.5% to 4% (employers’ contribution being cut from 4.75% to 3.25% and employees’ contribution from 1.75% to 0.75%). This the first reduction in contribution rates in nearly 22 years. The reduced rates will be effective from August 1, 2019.

The reduced rate of contribution will bring about a substantial relief to workers and will facilitate further enrolment of workers under the ESI scheme and bring more and more workforce into the formal sector.

The reduction in contribution rates is part of the government’s strategy to widen the social security net, improve condition of workers and ease the burden on employers. It is also seen as a move to improve the ease of doing business in the country…

To read the full article PLEASE CLICK HERE.

2.  Fin sector raises NBFC liquidity issue with FM  : TOI, dated 14.06.2019

Creation of a special liquidity window for non-banking finance companies (NBFCs), review of interest rates of small savings schemes and setting up of a panel to review bad loan provisions in the banking sector were among a clutch of demands raised by the financial and capital markets sectors in their prebudget meeting with finance minister Nirmala Sitharaman on Thursday. The main areas of discussion focused on issues linked to the capital markets, the financial sector, NBFCs and alternative investment funds (AIFs), among others……..

They also demanded the setting up of a separate bond exchange as well as make corporate tax progressive so as to incentivise the MSME sector….

To read the full article PLEASE CLICK HERE.

3. FB backs Meesho in first startup funding in India : TOI, dated 14.06.2019

Facebook has picked up a minority stake in social-commerce company Meesho in its first startup investment in the country. While the companies did not announce the deal size, the social networking giant’s investment is pegged at $25 million and could be part of a larger round of $100 million that Meesho is raising, according to sources.

Started in 2015, the Bengaluru-based startup connects resellers to manufacturers to sell goods via social media platforms. These re-sellers, who are typically housewives and small business owners, use platforms like Facebook and WhatsApp to sell products like art & craft, fashionwear, home & kitchen products, electronics and travel packages.

The platform is clocking annualised gross sales of about $200 million right now, industry sources added, with 80% of the sales coming from non-metros. Over 80% of these entrepreneurs or re-sellers on Meesho are women, who are selling online for the first time.

To read the full article PLEASE CLICK HERE.

This is for your kind information. 

Thanking you, 
With regards, 

For Silvassa Industries & Manufacturers Association, 

Narendra Trivedi,

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