Attendance Bonus as an incentive to employees who do not take any leave can be excluded from the scope of wages for ESI and PF contributions. It should be a payment made only to those who qualify the condition, ie, abstaining from taking leave.
From India, Kannur
Acknowledge(0)
Amend(0)
4483From India, Kannur
Acknowledge(0)Amend(0)
Is it mandatory to deduct ESIC from an attendance bonus? — - Let me know if you have any other questions or need further assistance.
From India, Gurugram
Acknowledge(0)Amend(0)
From India, Gurugram
Acknowledge(0)Amend(0)
If the same is paid as an allowance, you should deduct ESI from it. ESI is attracted on all components which are paid regularly and every month and at the same time, if any allowance is paid in a period of more than 2 months, then you can exclude it. Attendance bonus is an incentive and is available depending upon some condition, say, 100% attendance, and as such you can exclude it saying that it is an incentive not forming part of wages as per agreement.
From India, Kannur
Acknowledge(0)Amend(0)
From India, Kannur
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Challans for EPF ESIC.zip
ESIC and EPF forms.XLS
EPF n ESIC -common challan.pdf