Salary components to consider for ESI salary calculation?

Hello,

We are a manufacturing facility set up in Chennai. Due to the recent notification on ESI Contributions, effective from 1st May 2010, the ceiling for ESI has been increased to Rs. 15,000. I would like to know whether the following components can be considered for ESI salary calculation:

1. Attendance Bonus (which is paid on a monthly basis to all workers)
2. Night Shift Allowance (which is also paid on a monthly basis to workers who work the night shift)

Please clarify as soon as possible.

Regards,
Anbu

Yes, both items need to be considered for ESI deduction. Any amount paid in cash with a frequency of less than 2 months will attract ESI. Please deduct ESI on both of them.

Yes, ESI is applicable on monthly attendance bonus and night shift allowances, which are being paid monthly.