Understanding ESIC Deductions on Basic Salary: How Can I Explain This to My Seniors?

Dear All,

I am working with a manufacturing company, and I have queries regarding ESIC calculation. Here, ESIC is deducted only on the basic salary, and there is no component such as HRA involved. I would like to know if there are any implications of deducting ESIC on the basic salary. How can I convince my seniors about this? I kindly request the experts here to assist me with this matter.

Thank you.

Hi,

ESI is to be contributed on the gross wages. If you are not splitting the wages into components such as Basic, DA, HRA, Medical allowances, etc., then you can contribute based on the basic salary.