ESIC Annexure

Hi all,
I have one general Question about ESIC Deduction in a salary Annexure
basic :- 4000
hra :- 2000
sepical allownace: 2000
PF : 480;- ......................Its inculdes in Package
CTC TOTAl = 8480
If employee Incentive is start on :- Rs 2500
then her total Cash in hand salary == 8000+2500= 10500
What amount ESIC can be deducted ?
pls solve it ,
i am so confuess

Hi Sunrosesan,
I think your Annexure is not clear, what is 2500? is this incentive, you remember drawing wage upto 10000 that's enough, then esi will be deduct, incentive amount on deduct on esic, if am wrong anyone correct me, my ID is [Login to view]
Regards
Subrahmanyam

ESIC is deduct in 2 qtrs i.e. April to Sept & Oct to Mar. You are not mentioned ur Incentive start from when. if it's start from april onwards and ur total earnings is more than 10000 accordings to Govt norms then you are not eligible for ESIC.
Regards
Milind

Hi Incentive is not a fixed remenuration. it varies with perfomance hence eligible for esi deduction. Only gross salary is considered for deductions not ctc. Hence pf contribution of employer is not taken into count for arriving calculation for esi. Gross less than 10000/- then esi is applicable. in case there is hike in the gross pay above Rs10000/-p.m then esi deduction should be continued till the contributory period is over. ie if hike is in may then deduction shall continue till sept and from october onward there wont be any esi deduction.
I hope it is clear now.
Regards
Prabhakar Rao.M