Dear seniors,
We have app. 200 employees and few are covered under ESI. We pay monthly incentive / bonus based on their performance. WE are paying salary and incentive together now.
(1) Case ONE : If gross salary is 8,000 PM and performance linked incentive varies from 500 to 2,000 PM . Should we pay esi contribution on 8,000 or 8,000 plus incentive ? We are paying incentive every month now but can pay it every two months or every months also.
(2) Case TWO : If gross salary is 14,000 PM and incentive is 3,000 - 6,000 PM , can we show whole earning above 15,000 and no need for ESI contribution ?
(3) What are the allowances on which ESI contribution is not applied like washing allowance ?
We have app. 200 employees and few are covered under ESI. We pay monthly incentive / bonus based on their performance. WE are paying salary and incentive together now.
(1) Case ONE : If gross salary is 8,000 PM and performance linked incentive varies from 500 to 2,000 PM . Should we pay esi contribution on 8,000 or 8,000 plus incentive ? We are paying incentive every month now but can pay it every two months or every months also.
(2) Case TWO : If gross salary is 14,000 PM and incentive is 3,000 - 6,000 PM , can we show whole earning above 15,000 and no need for ESI contribution ?
(3) What are the allowances on which ESI contribution is not applied like washing allowance ?