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?
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?