ESI Exemption On Overtime - CiteHR
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Sumitk.saxena
Service/manager-hr
Kamgarvishwa.com
Self Employed
Debapriya_jsr
Hr Generalist
+2 Others

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Hi, Is it possible to give ESI only on salary(excluding overtime allowance) . If some staff do not want to pay ESI on overtime then in which head we can include this overtime .
Sir,
1. Payment of contribution on all "wages" as defined under ESI Act, 1948 including on Overtime wages is a statutory responsibility of all concerned. There is no escape from such provisions.
2. Booking of expenses in any of account heads in the accounts books of the unit/factory/establishment is immaterial. If the Inspecting Authority came to know that on such wages of OT contribution was not paid, the objection will be raised and the employer will be required to pay total contribution including employees' share alongwith interest and damages on such delayed payment of contributions.

Dear Mr.Manoj , I do agree with Mr.Harsh Mehta . Warm Regards, Ashfaque Manjar
Dear Rajasree
Just imagine person met with an accident while he is performing his duty during overtime. Can we deny him medical assistance or other compensation benefits ? Answer is NO. If you do not contribute ESI liability for OT hours & unfortunately same is highlighted by ESI authority and if unfortunately something went wrong during OT hours in that case employer will have to pay from his pocket or under Employee Compenstion Act. Over and above ESI authority will ask for interest and damages on this omitted wages along with procecution.

Overtime cannot be excluded from ESI. Even if he is working outside the factory or premises are also to be included.
can you pay it bimontly in a heading Like Bimonthly Exgratia, Incentive?Then problem is solved.The time imterval should be more than two months.
Agreed with all above cited comments the i am enclosing the esic revenue department manual for the reference. Thanks & Regards, From, Sumit Kumar Saxena
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