Salary Breakdown and ESI Contributions: Can We Exclude Other Allowances?

fastanurag
Hi HR Gurus,

Can we make salary breakup with the following components: Basic + DA + Other allowance?

As for ESI contribution, wages included Basic + DA + all allowances that are fixed on a monthly basis. My question is, can we exclude other allowances regarding wages for making ESIC contributions?

Thanks a lot,
Anurag
jayesh1
All earnings are included to calculate ESIC (i.e. Basic + DA + HRA + Allowance + Incentives + Overtime, etc).

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malikjs
Dear,

You have to take other allowances into consideration for ESI purposes.

Regards,
JS Malik

QUOTE=fastanurag;792974]

Hi HR Gurus,

Can we make a salary breakup with the following components: Basic + DA + Other allowance and As for ESI contribution, wages included Basic + DA + all allowances that are fixed on a monthly basis. My question is, can we exclude other allowances concerning wages for making ESIC contributions?

Thanks a lot,
Anurag[/QUOTE]
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