ESI Contribution on Arrears: Do You Know If It's Deducted?

Dear Users, good morning. Please guide me on whether the ESI contribution is deducted on arrears or not.

Thanks.

As per the rule, we cannot deduct ESIC from the salary. Please find attached the Employer guide.

Thank you.

Regards,
J.N. Modi

Dear Mr. Modi, I am delighted to see your interpretation of the handbook. Please take out some time to correct my impression on this topic, which is as follows:

ESI Contribution on Payments

Any payment, including wages or any other income arising out of employment in a factory or establishment, attracts ESI contribution except in cases where the frequency of payment is more than two and a half months. The definition of wages includes arrears of wages resulting from wage revision. This is the reason some organizations give ad-hoc payment in lieu of arrears. Furthermore, bonus under the act and gratuity payable on separation are exempt.

Please spare some time and help us with your views.

Thanks & Regards,
Generalist091