ESIC Deduction Dilemma: Should Incentives Affect Coverage When Gross Exceeds 15,001?

vishal08dubey

ESIC Deduction Query

I need your help. An associate is covered by ESIC, but when he receives an incentive that causes his gross to exceed 15,001, ESIC is not deductible. Please advise me on whether ESIC should be deducted or not?

Thanks in advance.

Regards,
Vishal

sharma sunil

If an incentive is to be paid on a monthly basis, then you should deduct ESIC on amounts greater than 15,001. If it is based on performance or is given occasionally, then you do not need to deduct ESIC from the associate.

Regards,
Sunil Sharma

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