Dear All, I am working with Manufacturing company, i have queries on ESIC calculation, here ESIC is deducted only on basic, there no component as HRA. I wanted to know is there any implication if ESIC is deducted on Basic. How do i convince my seniors about it. Requesting the experts here to please help me with the same.
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Hi ESI is to be contributed on the gross wages. If at all you are not splitting the wages as Basic,DA, HRA, Medical allowances etc then you can contribute on basic
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