Are Attendance Bonuses and Shift Allowances Included in the ESI Wage Ceiling of Rs. 15,000?

Dear CiteHR family members,

As we know, the ESI wage ceiling is Rs. 15,000/-, which includes all regular wages and allowances up to Rs. 15,000/-. This raises a question: do attendance bonuses, shift allowances, and production incentives also count towards the ESI wage limit of Rs. 15,000? Our ESIC branch manager in the area claims that these components are included in the wage limit, but based on my understanding, these components should not be considered. Can you please provide clarification and share your views on this issue?

Thank you,

Chikkegowda N
Senior HR Executive

Yes, he is right. All the components payable monthly need to be included in the calculation.

Hi, the task we are currently working on involves the ESI Wage ceiling. My query pertains to the components that will be considered for this.

Any components you include in the salary that you pay as a monthly salary are all considered for the ESI wage ceiling.

Regards,
J L Trivedi
Ahmedabad