Rahul Chhabra
Hr Professional
Aniket Pathak
Sr. Executive Hr

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We provide commission to our sales persons except salary. I have a doubt for its will come under ESI or EPF or TDS. Kindly guide me
From India, Coimbatore
Dear Anony,
Any kind of commission or incentive falls under the purview of tax; hence you would have to consider these earnings as taxable income.
PF is calculated on Basic (+da); while ESI is calculated on gross; hence any earnings in the form of commission or incentive will not hamper the ESI or PF deductions.
Rahul Chhabra

From India, Delhi
Dear Rahul sir, It will surely hamper ESIC if getting paid in the salary. As it will be a part of gross salary and ESIC contribution is based on gross.
From India, Pune
Dear Aniket,
Please treat incentives/commissions or reimbursement separately from gross for the computation of ESI. This is a wrong practice. This will push some of the eligible ESI members to be out of ESI for the months they earn an incentive etc.
Rahul Chhabra

From India, Delhi
Dear Rahul Sir,
No that will not happen as in common practice you don't consider eligibility of ESIC on commission or incentive but you have to pay the contribution on actual gross.
Example: If a person have gross salary 20000/- in normal course. If in month he gets commission of say 10000 then the gross salary calculates to be 30000/- in such case ESIC must be deducted but, on 30000/-
just because employee got commission in one month doesn't mean that you should opt that employee out of ESIC.

From India, Pune
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