Hi All,
I have a query regarding ESIC norms. As per my knowledge ESIC cap is 15000. My query is in my company we have heads Basic HR TA Spl Allownace and Shift allowance. we calculate esci on Gross earning Basic+HR+TA+Spl Allowance. If we pay Shift allowance (night shift) in a particular month, did we add shift allowance to his gross and deduct his ESIC contribution after addition of shift allowance irrespective if gross went above 15000/- Like Basic+HR+TA+Spl alowance+Shift
From India, undefined
I have a query regarding ESIC norms. As per my knowledge ESIC cap is 15000. My query is in my company we have heads Basic HR TA Spl Allownace and Shift allowance. we calculate esci on Gross earning Basic+HR+TA+Spl Allowance. If we pay Shift allowance (night shift) in a particular month, did we add shift allowance to his gross and deduct his ESIC contribution after addition of shift allowance irrespective if gross went above 15000/- Like Basic+HR+TA+Spl alowance+Shift
From India, undefined
1 Sir, Night Shift Allowance is wages under ESI Act, 1948 on which contribution is required to be paid.
2. Similarly, in my opinion, you can exempt any employee if by adding his amount of said Night Shift Allowance the wages of employee exceed coverage limit i.e. Rs.15000/-per month, subject to the condition that coverage of said employee will continue till close of current contribution period (irrespective of his total wages) as per provisions of said Act.
3. In such situation the contribution will be required to be paid on total wages including said Night Shift Allowance (even though total wages may be more than Rs.15000/-) upto close of said current contribution period.
From India, Noida
9212. Similarly, in my opinion, you can exempt any employee if by adding his amount of said Night Shift Allowance the wages of employee exceed coverage limit i.e. Rs.15000/-per month, subject to the condition that coverage of said employee will continue till close of current contribution period (irrespective of his total wages) as per provisions of said Act.
3. In such situation the contribution will be required to be paid on total wages including said Night Shift Allowance (even though total wages may be more than Rs.15000/-) upto close of said current contribution period.
From India, Noida
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