Can Monthly Variable Pay Avoid ESIC, PF, and Gratuity Deductions? Seeking Guidance

vvyas83

Dear Seniors,

Kindly guide if variable pay can be paid monthly. Also, if it is paid monthly, does it attract deductions of ESIC, PF, Gratuity, etc., as annual payment does not attract all these.

Your Friend

Hi Vijay,

Variable pay can be paid monthly, quarterly, or yearly. It all depends on company policy upon which variable pay is framed. PF, ESIC, and Gratuity will be applicable on fixed monthly components.

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