Understanding Employee Benefits: What Happens to Dependents and Salaries in Critical Situations?

Dear sir, Please solve my queries.

Benefits for Dependents in Case of Employee Death

What is the benefit given to dependents in the case of the death of an employee? To whom, for how many dependents, what percentage of benefit, and up to which age?

Are dependents entitled to funeral expenses in the case of the death of an employee other than on the job/work?

Leave Salary and Hospitalization

Does the company grant leave salary if an employee is hospitalized? If not, for how many days does ESIC provide salary for leave, and at what rate?

Rehabilitation Allowance

What is rehabilitation allowance?

ESI Deductions on Arrears and Bonuses

Suppose the company gives arrears to an employee, then his gross salary for that month increases. What will be the deduction of ESI? Will it be based on the previous salary or the increased salary?

Is overtime included in ESI deductions?

Suppose a bonus is paid in the month of November, and it is part of the gross salary. Will ESI deductions be made on the new gross salary?

Thanks in advance.

Sincere gratitude.

Let me try to answer a few of your queries. Beforehand, it would be advisable if you could let the forum know who you are and the purpose of so many questions arising in your mind. Is it related to your work or for your academic purposes?

1) Entitlement to Funeral Expenses

Is a dependent entitled to funeral expenses in case of the death of an employee other than on the job/work? Yes, dependents are entitled to funeral expenses since the employee has died, so obviously, the dependent/family members are entitled.

2) Leave Salary for Hospitalization

Does the company grant leave salary if an employee is hospitalized, and if not, for how many days does ESIC give salary for leave? What is the rate? An employee can either take leave salary or can benefit from the ESIC for hospitalization as per the Act.

3) ESI Deduction on Arrears

Suppose the company gives arrears to an employee, and then his gross salary for that month increases. What will be the deduction of ESI? Will it be on the previous salary or the increased salary? ESIC contribution is applicable to arrears too.

4) ESI Deductions on Overtime

Does overtime count in ESI deductions? ESIC contribution also applies to overtime.

5) ESI Deduction on Bonus

Suppose a bonus is paid in the month of November, and it is a part of the gross salary. Whether ESI deduction will be done on the new gross salary. Annual Bonus is not considered as wages; hence, ESIC contribution is not applicable.

I hope your queries are resolved.