ESI On Bonus

Dear Seniors,
In pharma industry, can we pay esi on bonus? Bonus is one of the breakups in our salary structure. Does this differ from state to state? Kindly help me out whether or not bonus can be put in the salary breakup. Please help me.
Saran

Any payment made in an interval of not exceeding two months shall attract ESI. Therefore, if bonus is paid monthly, the same will be treated as part of salary and will attract ESI. On the otherhand, bonus paid annually and following the Payment of Bonus Act will not be considered for ESI.
Regards,
Madhu.T.K

Dear Sir,
Thank you for your quick reply. Presently Basic, HRA, Bonus (8.33%), Conveyance allowanace, Edn allowance and Fbp are my monthly salary breakups. Now that my md wants me to remove bonus from breakup but pay monthly only (showing it as addition).
Can we do that?
If yes, can you please guide me in designing my new break up?
If no, can you please suggest the new break up, if i would like to pay the bonus every quarter or every 6 months.
Please help me.
Saran

Dear friend,
As has been pointed out, any payment which forms part of salary paid at intervals of not exceeding two months will attract ESI contribution. Normally bonus is not paid monthly. Nor does it form part of salary component. While it is paid annually or bi-annually, it is taken into account for calculating the cost to the Company.
S. Krishnamoorthy

Thanking you for your information, Sir, do we need to pay the bonus for an employee who has resigned from duties. Can i have the details please? I searched this site regarding the same but could not find any details. Please help.
Regards,
Saran

Dear Saran,
As per my consider we need not pay ESI on statutory bonus. If it is production bonus and if you paid by monthly basis you should pay ESI on that bonus amount.
Regards,
Raghav

Dear Mr. Raghav,
That means, I need not pay esi on monthly bonus i am paying to my marketing staff. But production bonus, if paid monthly then attracts ESI. My company started 10 years back and my factory started 6 months back. Do i need to pay bonus to my factory staff or can i make the bonus paid from 6th year onwards? Kindly suggest
Regards,
Saran

Thanks Ms.Madhu.T.K.,
I have one question, as per bonus act employee eligible for bonus after completing 30 working days ,if we pay bonus after completing(Or employee resigned) 30 working days to employee then bonus will consider under ESI or not

Dear Mr. Sameer
No, in such a situation ESI will not attract on the payment of Bonus, because the payment is to be paid only once in the service time and its recurrence is not there, hence it will be out of the ESI coverage as per sec.2(22) of the ESI Act.
Pkjain

Dear Mr.Jain,
Thanks for quick reply,
In section 2(22)-ESI point 1) does not include--a) any contribution paid by the employer to any pension fund or provident fund, or under this Act; , our salary in consider cost to company means 24% PF amount consider is a part of CTC in that case employer 12% contribution is under ESI