Show Statutory Bonus In Gross & Later Exclude Statutory Bonus For ESIC?

prasad_3677
I am now deducted for ESIC however my salary is 21500
When questioned they say statutory bonus is excluded in gross salary & hence which comes to 20500/- which is as per govt order
is this a right practice to show statutory bonus in gross & later exclude statutory bonus for ESIC
PLEASE ADVICE
Glidor
bonus is paid monthly or not, that is basic point to discuss,
if paid monthly then it is part of salary,
if calculated monthly but paid yearly, then excluded.
skpathak1010
In my Opinion Rs. 21000 for ESI Deduction , i think Rs. 21000 is the maximum limit and its for Basic wages only on which PF & ESI is Accounted
SHARMA SONU
Any one tell me that what is the contribution rate for employer side in ESIC after increase the limit for ESIC.
Glidor
contribution rate ESIC on GROSS Wages
employee 1.75% ( 1% in newly notified areas)
employer 4.75% ( 3% in newly notified areas)
total -- 6.5% (4% in newly notified areas)
v shakya
Dear Prasad,
Any payment made in interval of not exceeding two month shall attract ESI. Therefore monthly payment of bonus shall be admissible for ESI. However while Monthly payment of bonus is the voilation of Payment of bonus act. 1965. Section 19(B) of the said act. Can be read as follow :- in any other cases within the period of eight month from the close of the accounting year.
Thanks & Regards
V SHAKYA
HR & Labour, Corporate Laws Advisor
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