Dear All Seniors, Greetings of the day Pls. confirm to me . In production incentive ESIC is Applicable ???
From India, Chandigarh
Acknowledge(0)
Amend(0)
From India, Chandigarh
Acknowledge(0)Amend(0)
Any component coming continuously for more than 2 months in the salary will invite ESI contribution. regards, Kamal
From India, Pune
Acknowledge(0)Amend(0)
177From India, Pune
Acknowledge(0)Amend(0)
Any cash benefits given to employees, apart from their gross salary, for a continuous period of 2 months will be calculated for ESI. For example, overtime, monthly incentives, and monthly bonuses will be calculated for ESI. However, annual bonuses and quarterly incentives will not be taken into account for ESI calculations.
Supreme Court Decision on ESI Calculations
According to a decision of the Supreme Court delivered on 8.3.2000 in the case of M/s. Whirlpool India Ltd. vs. ESIC in civil appeal No. 1903 of 2000, additional remuneration to be considered as wages must be paid at intervals not exceeding two months, as opposed to just being payable. Therefore, there must be actual payment, and production incentive payments do not fall under the definition of wages as defined in Sec. 2(22) of the Act. Hence, no contributions are payable on incentive bonuses provided the payment frequency is more than 2 months.
Earlier instructions were issued by this office via Memo No.T-11/13/53/19-84-Ins.IV dated 19.9.84, Memo No. Ins.III-2(2)/2/69 dated 26.12.73, Memo No.T-11/13/54/18/82-Ins.IV dated 14.7.82, and Memo No.D/Ins.5(5)/68 dated 18.9.88.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Supreme Court Decision on ESI Calculations
According to a decision of the Supreme Court delivered on 8.3.2000 in the case of M/s. Whirlpool India Ltd. vs. ESIC in civil appeal No. 1903 of 2000, additional remuneration to be considered as wages must be paid at intervals not exceeding two months, as opposed to just being payable. Therefore, there must be actual payment, and production incentive payments do not fall under the definition of wages as defined in Sec. 2(22) of the Act. Hence, no contributions are payable on incentive bonuses provided the payment frequency is more than 2 months.
Earlier instructions were issued by this office via Memo No.T-11/13/53/19-84-Ins.IV dated 19.9.84, Memo No. Ins.III-2(2)/2/69 dated 26.12.73, Memo No.T-11/13/54/18/82-Ins.IV dated 14.7.82, and Memo No.D/Ins.5(5)/68 dated 18.9.88.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
ESIC Cealing Wages 10 to 15 Thousand.pdf