Dear Senior,
Please help me in clarifying the ambiguity that I am having regarding ESIC contribution. Do additional bonuses attract ESIC coverage and contribution if it is a break-up part of CTC? I am facing a problem while determining the contribution liability.
Regards,
Mohan
From India, Mumbai
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6Please help me in clarifying the ambiguity that I am having regarding ESIC contribution. Do additional bonuses attract ESIC coverage and contribution if it is a break-up part of CTC? I am facing a problem while determining the contribution liability.
Regards,
Mohan
From India, Mumbai
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Clarification on Bonus and ESIC Contribution
Bonus paid in accordance with the Payment of Bonus Act is neither a part of the salary for the purpose of eligibility coverage of ESI nor the calculation of ESI contribution. However, at the same time, if the bonus is included in the salary on a monthly basis, the same will be treated as part of the salary. This is one of the basic problems with the CTC concept of the salary structure. Therefore, remove the bonus part from the monthly remuneration payable and pay the same separately under the head "Bonus," preferably at intervals of more than two months.
Regards,
Madhu.T.K
From India, Kannur
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Bonus paid in accordance with the Payment of Bonus Act is neither a part of the salary for the purpose of eligibility coverage of ESI nor the calculation of ESI contribution. However, at the same time, if the bonus is included in the salary on a monthly basis, the same will be treated as part of the salary. This is one of the basic problems with the CTC concept of the salary structure. Therefore, remove the bonus part from the monthly remuneration payable and pay the same separately under the head "Bonus," preferably at intervals of more than two months.
Regards,
Madhu.T.K
From India, Kannur
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CTC Structure.xls
ESIC-Contributi on-Transfer-For m.pdf