Jeevarathnam
Sr. Manager Hr/admin
Manojkamble
Sr. Hr Executive
+1 Other

Thread Started by #monika paliwal

Dear Seniors,
My company is going to apply KRA (Key Responsibility Area) system from April 2017, in which employee will get increment in Incentive form. Example if A is earning 10000 then he will get 10% of his salary as incentive if he fulfill all targets. but he will get Incentive at quarterly basis.. means incentive of APRIL, MAY, JUNE wll credit in Salary of June Month.
My question is that how should I show it in monthly salary and how to calculate ESI ? is ESI applicable on incentive?
What is the perfect way to show incentive in Pay Slip? May be employee get Incentive in one month and next month it could be 0.
27th April 2017 From India, Delhi
If incentives are paid monthly then ESI will attract on the incentives as well. If it is paid quarterly/half yearly / annually then it will not affect.
Any how its better to pay incentives separately & declare as incentives
27th April 2017 From India, Bangalore
Dear Monika,
If the incentives are paid as a part of salary then it will surely attract ESIC contribution, Thus advisable not to pay along with salary to avoid ESIC. But yes it will be part of their annual income thus it will come under their taxable income.
28th April 2017
Increment and Incentive are two different thing altogether, Incentive is not a salary component and hence not required to be shown in Payslip/Salary Sheet as told by above members. On the other hand Increment is a Salary hike and has to be paid monthly which is deductible for all Statutory applicable.
29th April 2017 From India, Ahmadabad
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2017 Cite.Co™