No Tags Found!


Ajay2201
Dear Seniors,
Our company pays incentive based on sales / performance to our employees .
I understand from various expert's postings that ESI contribution shall be applicable on incentive amount if incentive is paid monthly. It will not be applicable if it is paid every three months. My questions are
(1) What if incentive is paid every two months or 65 days. We wish to pay as soon as possible.
(2) What if we pay every month some amount as loan ( say round figure 2,000/- ) and finally adjust that loan against actual incentive paid after three months?
(3) Is there any way by which we can pay incentive every month or every two months but need not pay extra contribution on incentive ?
Regards,
Ajay Agarwal

From India, Hyderabad
vigna.84@gmail.com
15

Dear Ajay,
1. ESI is applicable if you pay those incentives once in two months...
2. If you do such practices then finally it will be traced in the Audit report, hence authorities will impose a huge liability with interest.
3.Check with your Auditor to resolve this.

From India, Madurai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.