Dear Team In terms of contract employment, If the annual bonus amount is paid on a monthly salary the same included in the salary register, whether we need to deduct the ESI and PF for the payment of the monthly bonus. Kindly provide your opinion for the same.
From India , Secunderabad
Dear Karthi
Since the periodicity of payment of Bonus amount is less than 2 months it will amount as wages under Sec.2(22) of ESIC.
Please refer:
"Bonus paid to the employees could not be treated as wage for the purpose of charging of contribution under Sec.2 (22), provided the periodicity of the payment is more than 2 months. The said issue was also considered in the meeting of the ESI Corporation held on 19.12.1968 and the Corporation agreed to the recommendations of the Standing Committee that bonus may not be treated as wage. Hence no contribution is payable on annual Bonus.
(Earlier instructions were issued vide memo No.Ins.III/2 (2)-2/67 Dt. 8.2.1967).
Shailesh Parikh
99 98 97 10 65

From India, Mumbai
Dear Mr Shailesh Parikh Since the above bonus payment is paid for the 12 months for the employees. So we have to consider for the ESIC wage. please suggest your share with yes or no.
From India , Secunderabad

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