Dear Harsh Kumar ji,
Thank you very much for your response to my comments. Your response compelled me to study the subject matter once again very carefully. On my fresh study I am convinced myself that you are absolutely correct and I made a mistake in reading and interpreting this subject.
To bring more clarity in this subject, I am giving below the text on the subject matter in the ESI Revenue Mannual:
L 8.19 Contributions on wages paid for back periods (arrears of wages): The question of payment of wages for back period arises in any one of the following contingencies:-
1. Sanction and payment of increment from a previous period;
2. Any increase in wages/remuneration is declared from a retrospective date as a result of wage revision under mutual agreement with the employees’ association/union and the management;
3. Periodical increases in Dearness Allowance from a back date;
4. An award of a tribunal or a judgment of any Court; and
5. A unilateral decision by the Management effecting increase in pay.
In all the above contingencies, the liability towards payment of contribution accrues only from the month in which the increment is sanctioned, agreement is entered in to, increase is announced, judgment is pronounced, or decision is taken as the case may be. There is no need to pay any contribution on the arrears pertaining to the period prior to the month of declaration/announcement/agreement as the case may be.
Thank you very much for your response to my comments. Your response compelled me to study the subject matter once again very carefully. On my fresh study I am convinced myself that you are absolutely correct and I made a mistake in reading and interpreting this subject.
To bring more clarity in this subject, I am giving below the text on the subject matter in the ESI Revenue Mannual:
L 8.19 Contributions on wages paid for back periods (arrears of wages): The question of payment of wages for back period arises in any one of the following contingencies:-
1. Sanction and payment of increment from a previous period;
2. Any increase in wages/remuneration is declared from a retrospective date as a result of wage revision under mutual agreement with the employees’ association/union and the management;
3. Periodical increases in Dearness Allowance from a back date;
4. An award of a tribunal or a judgment of any Court; and
5. A unilateral decision by the Management effecting increase in pay.
In all the above contingencies, the liability towards payment of contribution accrues only from the month in which the increment is sanctioned, agreement is entered in to, increase is announced, judgment is pronounced, or decision is taken as the case may be. There is no need to pay any contribution on the arrears pertaining to the period prior to the month of declaration/announcement/agreement as the case may be.