Understanding ESIC Deductions: Do Paid Leave and Bonuses Affect Contributions?

nawaleshashikant9@gmail.com
Can anyone tell me if we have paid leave with wages and a bonus on a monthly basis, do we need to deduct the ESIC on the same?
srihari2720
Hi, you have to deduct the ESI on wages but not on the bonus.

Regards,
Sriahri
nawaleshashikant9@gmail.com
We deduct from bonuses and leave, but our client says not to deduct.
varghesemathew
Understanding Bonus and Wages in ESIC Contribution

Bonus other than statutory bonus is considered wages, and contribution is payable on it. Wages paid for leaves are also considered as wages.

Regards,
Varghese Mathew
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