My salary rs.20000/- and my overtime is rs.3500/- esic to be paid for 20000/- or 23500/- please clear my doubt?
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Employer's Offer for Overtime Work
In the case of the employer, when there is a need to have work done expeditiously, in addition to the normal work during working hours, the employer offers the employee the opportunity to do overtime work after regular hours.
When an employee does overtime work, it amounts to acceptance of the same; hence, a concluded implied contract emerges between the employer and the employee. Both the remuneration received during working hours and overtime constitute a composite wage, thereby being a wage within the meaning of Sec. 2(22) of the ESI Act. Therefore, the contribution is payable on the overtime allowance. However, overtime allowances will be considered as a wage for the purpose of charging the contribution only and will not be considered for the purpose of the coverage of the employee under the Scheme.
Your ESIC Contribution on Rs. 23,500
Regards,
Amit
From India, Surat
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144In the case of the employer, when there is a need to have work done expeditiously, in addition to the normal work during working hours, the employer offers the employee the opportunity to do overtime work after regular hours.
When an employee does overtime work, it amounts to acceptance of the same; hence, a concluded implied contract emerges between the employer and the employee. Both the remuneration received during working hours and overtime constitute a composite wage, thereby being a wage within the meaning of Sec. 2(22) of the ESI Act. Therefore, the contribution is payable on the overtime allowance. However, overtime allowances will be considered as a wage for the purpose of charging the contribution only and will not be considered for the purpose of the coverage of the employee under the Scheme.
Your ESIC Contribution on Rs. 23,500
Regards,
Amit
From India, Surat
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