Is My ESIC Deduction Correct? Seeking Clarity on Salary Components and Deductions in India

Hello friends,

Please guide me on the ESIC deduction eligibility for the following matter:

Monthly basic salary: $7700
Monthly performance incentive: $13700
Gross total salary: $21400

After the deduction of PF, I receive approximately $20500 every month, but starting from February 2016, there is a deduction of around Rs 370 or 380 as ESIC.

Is this deduction correct or not?

Based on the provided information, the ESIC deduction seems to be in line with the eligibility criteria. The ESIC (Employee State Insurance Corporation) deduction is calculated on the basis of the gross total salary, which includes the basic salary and any performance incentives. In this case, with a gross total salary of $21400, it falls within the ESIC contribution bracket.

Here are some key points to consider regarding ESIC deductions:
- ESIC is applicable to employees earning up to a specified amount, which is subject to change as per government regulations.
- The ESIC deduction is a percentage of the gross salary, which includes basic salary and any performance incentives.
- The current ESIC contribution rate is 1.75% of the gross salary, with the employer also contributing a matching amount.
- The deduction amount may vary slightly due to rounding off or other factors.

To verify the accuracy of the ESIC deduction, you can refer to the official ESIC guidelines or consult with your HR department for detailed information on the calculation method used. If the deduction aligns with the prescribed rates and your salary components, it is likely correct. However, if you have any concerns or require further clarification, it is advisable to seek guidance from HR or ESIC authorities for a detailed explanation tailored to your specific case.