Is ESI Applicable to Quarterly Employee Incentives? Seeking Legal Insights and Guidance

Jitender Kamboj

Dear All,

Please guide if there is any applicability of ESI on incentives paid to employees on a quarterly basis. Thanks.

Also, suggest the applicable / not applicable clause under the relevant law.

Jitender KGOC

Madhu.T.K

Any payment made at intervals of more than two months will not be considered part of the ESI contributing salary. Therefore, if you pay incentives once every 3 months, it will not trigger ESI contributions.

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