For example ctc of one employee ids 9500 one month he gets 3000 as incentive and other months it varies between 200 to 200.Then the ESIC will be deducted or not?
From India, New Delhi
From India, New Delhi
Incentive paid as part of contract of employment shall be treated as part of wages for determination of ESI contribution. However, for deciding the eligibility of an employee for ESI coverage, the treatment of incentive will be different. Since the incentive is not fixed amount but varying according to performance, the same will not be taken as basis for coverage or non coverage of employee.
In the instant case, employee will be covered by ESI and contribution subject to Rs 10000 has to be paid from the salary including incentives.
Regards,
Madhu.T.K
From India, Kannur
3891In the instant case, employee will be covered by ESI and contribution subject to Rs 10000 has to be paid from the salary including incentives.
Regards,
Madhu.T.K
From India, Kannur
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Bombay Anand Bhavan Restaurant-vs- ESIC SC 2-09-2009.pdf
ESIC Amendment.doc