Dear Sir, I have gone through your mail. I agree with your comments. Example:- An employee is drawing a monthly salary as detailed below:- Basic:Rs.5,000/- HRA Special Allowance and Incentive Rs.1,000/- Gross Earnings is Rs.10,500/-- As per Act he is out of ESI as his salary is more than Rs.10,000/-
Querry If the above employee avails 5 days leave on LOSS OF PAY, whether he need to be covered and ESI to be recovered because of the reason his Gross Earnings has come down to As Per ACT the Definition of Wages is as follows:- WAGES Wages means all remuneration
paid or payable in cash to an employee , if the terms of the contract of employment, express or implied, were fulfilled and includes any payment to an employee in respect of any period of authorized leave, lock out, strike which is not illegal or layoff and other additional remuneration, if any, paid at intervals not exceeding two months, but does not include:- [IMG]http://esicdelhi.org.in/dot_arrow.gif[/IMG] Any contribution paid by the employer to any pension fund or provident fund, or under this Act; [IMG]http://esicdelhi.org.in/dot_arrow.gif[/IMG] Any traveling allowance or the value of any traveling concession. [IMG]http://esicdelhi.org.in/dot_arrow.gif[/IMG] Any sum paid to the person employed to defray special, expenses entailed on him by the nature of his employment; or [IMG]http://esicdelhi.org.in/dot_arrow.gif[/IMG] Any gratuity payable on discharge. The above definition has three parts. [IMG]http://esicdelhi.org.in/dot_arrow.gif[/IMG] All remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, was fulfilled. [IMG]http://esicdelhi.org.in/dot_arrow.gif[/IMG] And includes any payment to an employee in respect of any period of authorized leave, lockout, strike which is not illegal or lay off. [IMG]http://esicdelhi.org.in/dot_arrow.gif[/IMG] And other additional remuneration, if any, paid at intervals not exceeding two months. But Does Not Include
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Any contribution paid by the employer to any pension fund or provident fund, or under ESI Act.
[IMG]http://esicdelhi.org.in/dot_arrow.gif[/IMG]
Any traveling allowance or the value of any traveling concession.
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Any sum paid to the person employed to defray special expenses entitled to him by the nature of his employment or [IMG]http://esicdelhi.org.in/dot_arrow.gif[/IMG] Any gratuity payable on discharge. My querry is that whether the above employee needs to be covered because of earned less wages or we have to consider NOTIONAL WAGES. If so can you refer any case laws / judgements to substantiate the same. Sincere advance thanks. Best Regards, R BALAJI