Is ESIC Deducted from Leave Encashment? Urgent Help Needed!

mgsorap

Hi,

I have a small doubt whether ESIC is deducted on Leave Encashment. Please guide me because this is very urgent, and I have to get back to my management about the same as soon as possible.

Thanks,
Milind

tsivasankaran

No payment made at irregular intervals of more than two months does not qualify for ESI coverage.

Siva

R G NAGENDRA

Hi Mr. Siva is absolutely right. You need not recover ESI on Leave encashment; I presume it is paid once a year.

R G NAGENDRA

Alphonse

Dear Friend,

Leave encashment will attract only PF, not ESI. For gratuity calculation, the formula is as follows: Basic + DA / 26 x 15 x number of years of service.

Regards,
Alphonse 😂😂😂
gt-electronicindia

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