Understanding ESI Deductions: Which Salary Components Are Affected?

Hi, our company divides the salary into the following pay heads: basic, DA, HRA, and others. My question is, what are the heads from which ESI is deducted from the salary structure? Is it basic, DA, and HRA, or only basic and DA? Please tell me, it is very urgent.

ESI is to be deducted on gross earnings, including overtime payment.

Regards,

Rajendra Bhavsar

ESIC has to be deducted from the gross salary for all components that are paid monthly.

Ishtiyaque Khan

Following does not attract any ESI contribution:

1. Washing allowance
2. Any incentive paid in the gap of more than 3 months.

Suren Turan

My dear friends,

Suppose I received my bonus in the month of December, and that is part of my gross salary for that month. In this case, will it be taken into consideration for ESIC, or will it be excluded? Since we are not covered under ESIC, but this is just to update myself.

Regards,
Ravi A.

In the case of the ESI facility for employees, is it not necessary for the employer to provide sick leave separately? I just read this on one site and am totally confused. Can anyone please explain to me how it works?

Regards,
Bhargavi H K