Dear Friends, Hello. I was computing ESI of staff in my company. For marketing staff we have profit linked allowance based on net sales.
I have queries on two grounds:-
1. if the variable portion is part of wages for ESI computation.
my related searches here-below imply to be part of wages all though i have heard it not part of wages for ESI calculation. If I am not the wrong line of demarcation is two month basis. In our case where profit-linked allowance based on net sales is on monthly basis, it will be all though somewhere else has prescribed variable portion as not being part.
2. if it is not a part there is no issue. But if it is a part then there is one more issue, how do we manage the ESI i.e at time when the total salary (i.e fixed pay portion and variable pay portion) is less than or equal to 15000, ESI becomes applicable, and when it exceeds 15000 above then it wll not be applicable.
As far as I know, this is not practically implementable that we pay at the time (when <1500) and skip another time (when >15000)
Can someone guide me on this issue?
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links are :
CONSTITUTION OF WAGES UNDER THE EMPLOYEES STATE INSURANCE ACT, 1948 heading – sales commission
Handloom House Ernakulam vs Regional Director, Esi on 29 April, 1999 (Case Study)
Employee's State Insurance Corporation heading incentive bonus
I have queries on two grounds:-
1. if the variable portion is part of wages for ESI computation.
my related searches here-below imply to be part of wages all though i have heard it not part of wages for ESI calculation. If I am not the wrong line of demarcation is two month basis. In our case where profit-linked allowance based on net sales is on monthly basis, it will be all though somewhere else has prescribed variable portion as not being part.
2. if it is not a part there is no issue. But if it is a part then there is one more issue, how do we manage the ESI i.e at time when the total salary (i.e fixed pay portion and variable pay portion) is less than or equal to 15000, ESI becomes applicable, and when it exceeds 15000 above then it wll not be applicable.
As far as I know, this is not practically implementable that we pay at the time (when <1500) and skip another time (when >15000)
Can someone guide me on this issue?
================================================== =================
links are :
CONSTITUTION OF WAGES UNDER THE EMPLOYEES STATE INSURANCE ACT, 1948 heading – sales commission
Handloom House Ernakulam vs Regional Director, Esi on 29 April, 1999 (Case Study)
Employee's State Insurance Corporation heading incentive bonus