Is Leave Encashment Subject to ESI Deductions? Seeking Guidance Before April Changes

Respected Seniors,

In regard to Leave Encashment, we are clearing the amount every six months. We would like to know if it is covered under ESI deduction or not. If yes, then the encashment will be done on an annual basis, and we hope that ESI deduction will not be applicable.

Kindly request guidance on this, as any new policy or amendments will be effective from the month of April.

Thank you all in anticipation!

Regards.

Any payment made to the employee on a quarterly, half-yearly, or yearly basis is not covered under ESI.

Thank you.

Thank you, sir, for the prompt response! It would be a great help if you could provide the supporting document as well. Then it would be a strong element for us to present in front of the management.