Monthly Incentive Affect ESIC And TDS - CiteHR
Srinath Sai Ram
Hr Manager
+3 Others

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Dear all,
We have a monthly incentive scheme.
should i have to declare this into salary slip
If employee covered under ESIC act, then on monthly incentive amount affect ESIC
How TDS works on Monthly incentive
If employee get higher than the ESIC limit, then we have to covered under ESIC
Thanks
Nisha
Gujarat
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Does every employee get monthly incentive? If yes then Incentive has to be part of ESIC & Salary Slip portion too. TDS has to cover Incentive part paid to employee/s.
Dear Nisha,
Greetings of the day!!!
As per my suggestion; Incentive amount with gape of 90 days will not attract ESIC so give quarterly incentive instead of monthly.
Incentive amount will attract TDS , no options are available for it.
If Gross salary will touch 25000 including of 5000rs of Incentive amount for ESIC member ( 20000rs fix gross ). than you will have to deduct the ESIC on 25000rs NOT ON 21000RS.
Employee covered under ESI during Contribution Period i.e
April to Sep Or Oct- Mar will continue to be covered though his Gross Salary is more than Rs21,000/- till the completion of respective Contribution period.
ESI Deduction on Gross earnings in the Month
But what to do where employees are not our payroll, we are paying them but get back total amount paid to persons works for someone without any deduction or addition. we are not HR agency or in hiring business. if we need to deduct TDS on monthly basis, whats will be the rate?
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