Are Washing Allowances and Incentives Part of Gross Salary for ESIC? Plus, Understanding PF Account Functions

Hi Seniors,

Please tell me if washing allowance is being added in gross (for ESIC benefit) and if incentives are included in the gross salary. Also, what are the functions of PF accounts 1, 2, 10, 21, and 22, apart from theoretical use?

Hi,

The washing allowance is not included in ESIC salary calculation. Apart from this, all other allowances are included. Regarding incentives, I believe they are not included in ESIC salary.

Tc.

Incentives paid in intervals of not more than two months will form part of the salary and will attract ESI. EPF is deposited under various heads of accounts, viz, A/C No 1, A/C No 10, A/C No 2, A/C No 21, and A/C No 22. The amounts paid into these accounts are as follows: Employees' share of Provident Fund being 12% and the employer's share of Provident Fund being 3.67% to A/C No 1, the employer's share of Pension Fund being 8.33% to A/C No 10, Administration Charges payable by the employer at 1.1% of the salary to A/C No 2, Employees' Deposit Linked Insurance (employer only contributes) being 0.5% to A/C No 21, and Administration charges payable by the employer for the administration of EDLI at 0.05% to A/C No 22.

Regards,
Madhu.T.K