For example ctc of one employee ids 9500 one month he gets 3000 as incentive and other months it varies between 200 to 200.Then the ESIC will be deducted or not?
From India, New Delhi
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From India, New Delhi
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Incentives paid as part of a contract of employment shall be treated as part of wages for the determination of ESI contribution. However, for deciding the eligibility of an employee for ESI coverage, the treatment of incentives will be different. Since the incentive is not a fixed amount but varies according to performance, it will not be taken as the basis for coverage or non-coverage of an employee.
In the instant case, the employee will be covered by ESI, and a contribution subject to Rs. 10,000 has to be paid from the salary, including incentives.
Regards,
Madhu.T.K
From India, Kannur
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4529In the instant case, the employee will be covered by ESI, and a contribution subject to Rs. 10,000 has to be paid from the salary, including incentives.
Regards,
Madhu.T.K
From India, Kannur
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ESIC-Contributi on-Transfer-For m.pdf
Employee treatment.doc