Good evening everybody, could someone please tell me if employees receive monthly incentives (production-based), should we deduct ESIC from the same amount, or if the incentives are paid quarterly or yearly?
Regards,
Rana
From India, Lucknow
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11Regards,
Rana
From India, Lucknow
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Definition of Wages Under the ESIC Act
Under the ESIC Act, the definition of wages for the purpose of paying ESIC is as per Section 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. It includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or layoff, 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 concession;
(c) Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(d) Any gratuity payable on discharge.
Now you have understood about the contribution on payments made to employees.
From India, Ahmadabad
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Under the ESIC Act, the definition of wages for the purpose of paying ESIC is as per Section 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. It includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or layoff, 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 concession;
(c) Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(d) Any gratuity payable on discharge.
Now you have understood about the contribution on payments made to employees.
From India, Ahmadabad
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