Statutory Bonus will not considered "Wages" under ESI Act and hence you would not need to deduct ESIC contribution.
From India, Mumbai
295From India, Mumbai
Annual Bonus
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.
https://www.esic.nic.in/wages
From India, Pune
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.
https://www.esic.nic.in/wages
From India, Pune
This discussion thread is old and is closed for new comments. If you want to continue this discussion or have a follow up question, please post a new thread. Add the url of this thread if you want to cite this discussion.
#Subject List: esi corporation esi act statutory bonus Country-India City-India-Mumbai
ESIC Pune_ Letter to All Employers.pdf
Statutory Compliance of a Industrial or Commercial Unit.xls
