ESI and EPF Deductions from Leave Salary: How Should We Handle This?

Can we deduct ESI and EPF contributions from the leave salary paid to employees? Kindly advise me on how to proceed further.

I request clarification on what "leave salary" means as mentioned in your remarks. There are two aspects to consider. Firstly, does the term "leave salary" refer to the sanction of leaves for a specific period of absence and the payment of wages for that period? Secondly, in many companies, accumulated leaves like earned leaves are allowed to be encashed by management, which is known as leave encashment. Are you asking whether the amounts from such leave encashment are considered wages?

Hi,

I need help. Can anyone provide me with a formula for calculating the ESIC contribution from the employer's side?