Dear Members,
I know this topic has been discussed quite often but I have few very specific questions. Would appreciate if someone could help me with them:
I understand that the wage limit (as of Nov 2013) for coverage under the ESI Act is Rs 15,000 (Rupees Fifteen Thousand) per month and the Employer Contribution is 4.75% and Employee Contribution is 1.75%
1. The ESI calculation is on what components of the CTC?
2. We have sales team for whom the Sales Incentive component is almost 50% of CTC. Can this component be included while considering the ESI eligibility? In that case will we have to include the Incentive part while calculating the ESI payable
3. How does the Eligibility and ESI calculation get affected if the Employees under perform and do not earn the Incentive.
Thanks in advance
I know this topic has been discussed quite often but I have few very specific questions. Would appreciate if someone could help me with them:
I understand that the wage limit (as of Nov 2013) for coverage under the ESI Act is Rs 15,000 (Rupees Fifteen Thousand) per month and the Employer Contribution is 4.75% and Employee Contribution is 1.75%
1. The ESI calculation is on what components of the CTC?
2. We have sales team for whom the Sales Incentive component is almost 50% of CTC. Can this component be included while considering the ESI eligibility? In that case will we have to include the Incentive part while calculating the ESI payable
3. How does the Eligibility and ESI calculation get affected if the Employees under perform and do not earn the Incentive.
Thanks in advance