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If an employee works on a National or Festival holiday, we pay to double the wages but are ESI and EPF deductions required?
From India, Chennai
Labour Law & Hr Consultant


Dear Nandakumar,

So far as EPF contribution is concerned, it is limited to the monthly threshold salary limit of the employee and when the salary for any month during which the employee is paid double wages on account of working on a national or festival holiday it automatically merges with the gross salary payable for the month and forms part of the contribution payable for the month subject to the threshold limit.

In respect of ESI, since the extra wages for the national/festival holidays are payable along with the wages for the month, it adds up to the contribution amount for that month.

From India, Salem
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