Harsh Kumar Mehta
Consultant In Labour Laws/hr
Tushar.swar
Manager - Human Resource
Satish.pandey
Labour Law Compliance
Hrrakesh10
Hr / Admin.
+4 Others

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Dear All,
If any firm or company paid bonus to his employees on monthly basis with the salary. The gross amount for calculate ESIC contribution, is includes or excludes bonus amount.
Regards
Rakesh Gupta
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Hi,
Bonus paid to the employees could not be treated as wage for the purpose of charging of contribution under Sec.2(22), provided the periodicity of the payment is more than 2 months. The said issue was also considered in the meeting of the ESI Corporation held on 19.12.1968 and the Corporation agreed to the recommendations of the Standing Committee that bonus may not be treated as wage.Hence no contribution is payable on annual Bonus.
Thanks
Sir(s), The types of bonus-namely production bonus or incentive bonus etc. paid monthly are wages and contribution on said wages is payable under said Act.
Most of the times organization paid certain incentives or different kind of bonus apart from fixed wages which are excluded in ESIC contribution.
Thanks Maheshji, Kindly intimate me some of examples of "certain incentives or different kind of bonus" as mentioned by you in above remarks which do not form part of wages under ESI Act, 1948.
Dear All
Thanks for giving reply on my question. But the main problem is that the bonus amount is not a Production bonus or any Incentive bonus. This the annual bonus amount which can paid on monthly basis.
Regards
Rakesh
Please let the forum know is this Bonus a Part of CTC or as per Bonus Act. If Bonus as part of CTC/Gross Salary which is paid on Monthly basis is termed as Wages/Salary by the ESIC personnel and hence it is liable for contribution.
This is my view, please wait for other seniors to respond.
Sir(s),
By virtue of provisions contained in Section 2(22) of ESI Act, 1948 if any amount is paid at an interval not exceeding to two months, then the same is wages and contribution is payable under said Act whatsoever, the name of the allowance may be.
Annual Bonus is paid as per provisions of the Payment of Bonus Act, 1965 and calculations are based on the figures of accounts of a unit in an accounting year.
As an HR, the member can refer the matter to ESIC with full details of the said Allowance, also indicating therein as to how the same is calculated and paid and request ESIC to allow their unit not to pay contribution on such so called annual bonus, which is reported actually paid monthly.
I Agree with Harsh, if any amount paid on monthly basis to employees, whether it is Bonus or Leave Encashment etc. then ESIC Should be deduct on those salary components.
Secondly if Bonus paid on annually then ESIC will not deduct.
Hi...all ESIC Max amount is 15000 , but my quire is if the employee getting his salary 20k including all the OT amounts . so how we pay to esic ?
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