ESI and Monthly Paid Leave: Is It Applicable to Leave with Wages?

Amandeep Mohal
Hi,

If leave with wages is paid to employees monthly, then is ESI applicable on leave with wages as well? Please guide.
saswatabanerjee
Any payment made monthly or bimonthly is a part of wages; therefore, you need to pay ESIC on it. The concept of monthly payment of leave salary is wrong in law and highly risky.
korgaonkar k a
Dear Amandeep Mohal ji, our learned member Saswata Banerjee rightly pointed out that the concept of monthly payment of leave salary is incorrect in law and highly risky. In fact, I was surprised to read your post and initially ignored it. I would like to know how you manage to pay leave salary monthly? It seems you don't allow any employee to avail of any leave. Why is there a leave provision in the law?

This is your first query on the forum ever since you joined nearly one and a half years ago. I do not wish to discourage you. I am not aware of your position in your organization or whether you are from the HR fraternity. If you are from the HR fraternity, you are a guide and adviser to your employer. For that, you should be able to understand the law yourself, discerning what is right and what is wrong. You need to read extensively and participate in discussions in forums like this.
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