ESI liability - if any allowance is being paid on monthly basis, it is liable for ESI?

RAMU-HR
This is Ramu working in a manufacturing industry as DM-HR at vijayawada. My query is that if we are paying leave encashment, Bonus on monthly basis, is it applicable for Deduction of ESI on said components.
We have engaged one security agency. As per our contract agreement all the statutory benefits included in the CTC ( PF, leave encashment, bonus etc). The security agency raising the bill every month including statutory benefits. Hence, we have insisted them to pay on monthly basis. Accordingly security agency are paying leave encashment allowance & bonus on monthly basis. It is reflecting in their pay slips.
I heard about that if any allowance is being paid on monthly basis, it is liable for ESI . Is it correct or not?
prudhvi-r-kolluru
Hello there,
if the security agency paid the salary they will not come under your payroll, so the salary or payment you pay that goes to security agency company not for their employees. if they mention in their payslips, that done according to their policies.
if the employees are under your payroll, the components you mentioned bonus and leave are having certain percentages according to statuary and if ESI is calculated according to basic, the components you mention will not come under basic.
i hope i cleared your doubt.
RAMU-HR
Dear sir
Esi is to be deducted on gross salary not only basic. If contractor fails in statutory compliance's, principle employer is the held responsible.
My query is not clarified
Ramu
Sumitro_d
@RAMU-HR, as per my knowledge and practice of ESI yes you are right about gross, the gross is Basic + DA/VDA + HRA. Nothing extra. But I'll still suggest seniors put some light on this topic.
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