ESI needs to be paid on monthly Earned Leave encashment?

kilarumeher
ESI needs to be paid on monthly Earned Leave encashment? When we are paying ESI on Bonus or any monthly earnings, we need to pay on EL also?
Regards
ravi5554
Hi,
Esi Should not be deduct on leave encasement & bonus as per act.
Bonus paid to the employees could not be treated as wage for the purpose of charging of contribution under Sec.2(22).
the following items are not considerable for ESI deductions...
The following items will not form part of the wage either under Section 2(9) or under Section 2(22) of the ESI Act:-
Payment made on account of un-availed leave at the time of discharge.
Commission on advertisement secured for Newspapers, if not paid to the regular employee.
Fuel allowance/Petrol allowance
Entertainment allowance
Shoes allowance
Payment made on account of gratuity on discharge/retirement.
Payment made on encashment of leave.
Harsh Kumar Mehta
Sir,

1.Fuel allowance/Petrol allowance,Entertainment allowance,Shoes allowance if paid every month as wage component are wages under ESI Act, 1948 and contribution on said wages are payable under said Act.

2. Shri Ravi5554 is requested to kindly disclose the details or instructions/decisions of hon'ble courts on the basis of which it is opined that said "Fuel allowance/Petrol allowance,Entertainment allowance,Shoes allowance" are not wages. This is important so that I may be able to correct my view accordingly.

3.There are so many types of Bonus viz. attendance bonus, production bonus etc., which again, if paid and payble every month as per terms and conditions of employment are all wages under said Act and contributions are payable. Only yearly bonus is not coverable as wages under said Act.Hope Shri Ravi5554 will clarify as to what type of "Bonus" he has mentioned as cannot be treated as wages so that the proper actions are taken so far as compliance under above Act and rules/regulations framed thereunder is concerned.
ravi5554
Hi,
If employee will receive monthly bonus, Incentive,overtime in his salary, then ESI contribution can be deduct from employee's salary.
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