+1 Other

Dear Seniors, Does Employee referral & Earned leave encashment attract ESI/ should employee referral & Earned leave encashment be included in Gross Salary? Regards Pooja
From India, Bangalore
No these are different payments. can be paid through cheque or along with the salary but this doent come under gross salary. as employee wont get the referral bonus & Earned leave encashment every month.
From India, Hyderabad
Dear Pooja,
Please refer the following section in ESI Act,
"22) “wages” means all remuneration paid or payable, in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes [any payment to an employee in respect of any period of authorised leave, lock out, strike which is not illegal or lay-off and] other additional remuneration, if any, [paid at intervals not exceeding two months], but does not include—
(a) any contribution paid by the employer to any pension fund or provident fund, or under this Act;
(b) any travelling allowance or the value of any travelling con¬cession;
(c) any sum paid to the person employed to defray special ex¬penses entailed on him by the nature of his employment; or
(d) any gratuity payable on discharge."
Hence these payment are not attract ESI contribution.
Hope I made it clear

From India, Coimbatore
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