Dear Sir, I would like to know how to calculate ESI on OT? Is it a ne provision? Please tell m?
From India, Nagpur
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2From India, Nagpur
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It is not a new provision. Overtime wages are not considered for deciding whether or not an employee is covered by ESI, but for determining the amount of contributions, the same is taken as wages. That means the total amount of wages, including OT, will attract a contribution, and even if during any month the total amount exceeds Rs 15,000, the contribution should be calculated on that higher salary, not restricting the contribution to Rs 15,000. Therefore, if an ESI-covered employee's wages during a month, including OT, come to Rs 17,000, then the contribution for that month shall be worked out on Rs 17,000 and not on Rs 15,000.
Regards, Madhu.T.K
From India, Kannur
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Regards, Madhu.T.K
From India, Kannur
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Method of calculation of wages.doc