Statutory Bonus Paid Monthly: Does It Mean Extra ESIC Contributions?

ANIL KUMAR T B
If we pay statutory bonus on a monthly basis as an advance, will it attract ESIC contribution?
umakanthan53
Any remuneration arising out of employment is paid to the employee on a monthly basis would attract ESIC contribution. Since statutory bonus is an annual payment based on the performance of the establishment and there is no obligation to pay it before the close of the Accounting Year, it may be paid as an advance subject to adjustment later. However, such an arrangement would require an agreement with the employees/union of employees.
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