Kindly let me know can we include the bonus part in gross wages to the purpose of cross the ESIC limit or not. Kindly reply me fast. Your’s Truly, Jitender Singh 09990029417
From India, New Delhi
68From India, New Delhi
Hi Jitendra, NO, Bonus can’t be part of Gross wages in any case. It can not be added to calculate ESI wages. Although we may add it for calculating CTC. Regards, Anuj
From India, Lucknow
From India, Lucknow
Hi, Bonus certainly not a part of Gross for Esi Purpose. Yes it is in CTC. But What about LTA and Medical? Can they be included as Gross for ESI? Please clarify.
From India, Mumbai
From India, Mumbai
Hello,
Bonus, conceptually, is an instrument of "profit sharing". In India, since the concept "Minimum Bonus" is sanctified by the law itself (The Payment of Bonus Act 1965), it is correct to say that at that level of a Minimum Bonus, it is a "deferred wage" and therefore it could be covered on "gross wage" where applicable and also in "CTC".
It cannot however, be included for ESI purposes because, "any payment made to a covered employee at the frequency of greater than TWO months is NOT a wage for ESI purposes". This is clearly provided in the act/scheme.
For the same reason, LTA is NOT wage for ESI, UNLESS it is paid at a frequency of less than two months!!!! The question if "Medical Allowance" will be a "wage" for ESI purposes will be decided on the same criterion!
Hope it helps!
Regards
samvedan
September 12, 2007
From India, Pune
Bonus, conceptually, is an instrument of "profit sharing". In India, since the concept "Minimum Bonus" is sanctified by the law itself (The Payment of Bonus Act 1965), it is correct to say that at that level of a Minimum Bonus, it is a "deferred wage" and therefore it could be covered on "gross wage" where applicable and also in "CTC".
It cannot however, be included for ESI purposes because, "any payment made to a covered employee at the frequency of greater than TWO months is NOT a wage for ESI purposes". This is clearly provided in the act/scheme.
For the same reason, LTA is NOT wage for ESI, UNLESS it is paid at a frequency of less than two months!!!! The question if "Medical Allowance" will be a "wage" for ESI purposes will be decided on the same criterion!
Hope it helps!
Regards
samvedan
September 12, 2007
From India, Pune
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M. Peer Mohamed Sardhar
093831 93832
From India, Coimbatore
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Amendment to Payment of Bonus Act 2015.jpg
Bonus act amendment gazette copy.pdf