Mr. Vishal,
E.S.I. ON OVERTIME
Whether E.5.1. Contributions are payable on overtime?
There has been differences of opinion of various High Courts on this point. Finally the Supreme Court has held that overtime wages will be liable for deductions for ESI's contributions. The employer is obligated to pay wages when the employee does work beyond his duty hours. This will be, in addition to payment of the wages an employee receives for normal work. In other words, both the remuneration received during the working hours and overtime constitute a composite wages and thereby it is a ‘wage' within the meaning of section 2(22) of the Act. Whatever remuneration, paid or payable for overtime work, forms wages under an implied term of the contract of employment and the remuneration paid therefore forms part of the 'wages' under section 2(22) of the Act. The Supreme Court considered elaborately and held that the Act is welfare legislation and the definition of wages is designedly wide.
Indian Drugs & Pharmaceuticals Ltd. etc. vs. Employees' State Insur· .nce Corporation, 1997 LLR 1 (Supreme Court).
Over time is not wage under PF act (PF wage = Basic + DA only)
All the best