Is Your Bonus Part of Gross Salary? Understanding ESIC Contributions for That Month

Bonus is under gross salary or not? If a yearly bonus of Rs. 8000 is paid to a Rs. 15000 gross-salaried employee in a certain month, what would be the employer and employee contributions of ESIC in that month?

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Is a bonus a statutory bonus?

Gross pay generally includes:
- Basic pay
- Dearness allowance
- House rent allowance
- City compensatory allowance
- Overtime wages (but not to be taken into account for determining the coverage of an employee)
- Payment for day of rest
- Production incentive
- Bonus other than statutory bonus
- Night shift allowance
- Heat, Gas & Dust allowance
- Payment for unsubstituted holidays
- Meal/food allowance
- Suspension allowance
- Lay off compensation
- Children education allowance (not being reimbursement for actual tuition fee)

Statutory bonus is not included in working out the bonus.

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