Glidor
Hr Consultant
Aks17
Compliance Manager
+1 Other

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Dear All,
I am from a manufacturing industry & we have technicians who are working under machines (Non unionised), they are covered under ESI. We are paying extra payment of Rs.1000/- for working on National / Festival holidays, but during Oct'18 salary we paid them extra Rs.1000/- for working on National Holiday (for one day) & after paying Rs.1000/- five of them crossed the ESI ceiling of Rs.21000/-, whether adhoc payment to be considered for ESI ceiling limit of Rs.21000/- or not.

No Extra payment is Overtime and ESIC is payable on Overtime also but it is not marked for exclusion, for exclusion the basis is average of 6 month gross salary is considered ( Excluding OT)
Dear Sharma Sir, is there any reference / clause in ESI act, please if any refer me sir.
Hi
As already informed by the learned member, the adhoc payment in your case does not disturb the ESIC applicability in any manner whatsover. It was payment done as over time which as you know is not a regular instance/occurrence and as such is excluded from the term 'wages' as per ESI Act.
Thanks and Regards

Dear Sir,
In both the months i.e. Oct'18 & Nov'18 we have two Holidays, Oct'18 (2nd Gandhi Jayanthi) & Nov'18 (1st November 2018) & we had payed paid the same, but as per ESI act it says -
"wages includes any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or layoff and other additional remuneration, if any, paid at intervals not exceeding two months"
we have paid two months continuously Rs.1000/- extra for overtime for which he comes out of ESI ceiling limit & in salary slip it has shown as "Adhoc payment" not Overtime, whether it considered as wages ?

Hi
Unfortunately the meaning of Ad hoc remains the same even if you keep paying the amount the whole year. It is not regular but created for a purpose either for some time or particular purpose. It is still temporary no matter how many months you keep doing it. If you wish to make it permanent there are other ways of doing it [adding in the basic or some other slot which is treated as wage]. For now you cannot stop paying contributions towards ESI for the employee whose overall income is above 21000 but is not a permanent feature. Even overtime is not to be treated as wages as far as ESI is concerned, the reason being the same - being not a regular payment.
Thanks and Regards

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