just want to know whether performance incentive is included in salary for calculating the ESI eligibility...?
From India
From India
I would like to invite the attention of the poster to the term " wages " u/s 2(22) of the ESI Act,1948. A critical analysis of the definition would reveal that wages for the purpose of the Act would take in its fold -
(1)All remunerations paid or payable to an employee as per the terms of the contract
(2) Any payment of authorised leave salary
(3) Payment for the period of lock-out
(4)Payment for the period of strike which is not illegal
(5) Lay-off compensation and
(6) Any additional remuneration paid at intervals not exceeding two months.
Performance incentive paid along with monthly salary should, therefore, be considered as an additional remuneration thereby attracting deduction towards ESI contribution.
From India, Salem
6016(1)All remunerations paid or payable to an employee as per the terms of the contract
(2) Any payment of authorised leave salary
(3) Payment for the period of lock-out
(4)Payment for the period of strike which is not illegal
(5) Lay-off compensation and
(6) Any additional remuneration paid at intervals not exceeding two months.
Performance incentive paid along with monthly salary should, therefore, be considered as an additional remuneration thereby attracting deduction towards ESI contribution.
From India, Salem
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Salary Break Up - Performance Pay.xls
Salary-Note.doc