Is necessary to pay ESI and PF deduction for Layoff wages. If yes any laws regarding this Layoff wages kindly mention.
From India, Bengaluru
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From India, Bengaluru
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Layoff wages are wages to be considered for deducting EPF and ESIC contributions. The following are the directions given by the ESIC Regional office on the deduction of ESIC contributions on layoff wages. Hence, you should follow the same.
https://www.esic.nic.in/wages
Wages Paid During Layoff
During the period of layoff, though the employee is not given actual work and is also not given full remuneration, certain wages are paid to the employee by way of remuneration for remaining attached to the factory/establishment of the employer. Therefore, such payments paid for the period of layoff are also wages for the purpose of Sec.2(22) of the ESI Act, and hence contribution is payable on such payments.
(Earlier instructions were issued in 1968).
From India, New Delhi
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425https://www.esic.nic.in/wages
Wages Paid During Layoff
During the period of layoff, though the employee is not given actual work and is also not given full remuneration, certain wages are paid to the employee by way of remuneration for remaining attached to the factory/establishment of the employer. Therefore, such payments paid for the period of layoff are also wages for the purpose of Sec.2(22) of the ESI Act, and hence contribution is payable on such payments.
(Earlier instructions were issued in 1968).
From India, New Delhi
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Minimum Wages, ESI & PF.pps
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