Hello Seniors,
Is the ESIC employee’s contribution rate of 1.75% is applicable on the regular gross salary(basic+hra+conveynce+etc.) or its also applicable to any kind of bonus received? By bonus I mean to say half yearly or annual bonus if I am receiving, then on that particular month will the contribution be calculated on the total amount or just the regular salary part?
This jan I received annual bonus of Rs 25000, and to my surprise they have calculated and deducted the ESIC contribution on the regular salary + bonus!!
Thnks for ur valuable inputs!!!!
Shom
From India, Gurgaon
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1Is the ESIC employee’s contribution rate of 1.75% is applicable on the regular gross salary(basic+hra+conveynce+etc.) or its also applicable to any kind of bonus received? By bonus I mean to say half yearly or annual bonus if I am receiving, then on that particular month will the contribution be calculated on the total amount or just the regular salary part?
This jan I received annual bonus of Rs 25000, and to my surprise they have calculated and deducted the ESIC contribution on the regular salary + bonus!!
Thnks for ur valuable inputs!!!!
Shom
From India, Gurgaon
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Dear Shom In ESI Calculation you need not add Conveyance. With warm regards S. Bhaskar 9099024667
From India, Kumbakonam
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From India, Kumbakonam
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Dear Shom,
Please read...
ANNUAL BONUS:
Bonus paid to the employees could not be treated as wages for the purpose of charging of contribution under Sec. 2(22), provided the periodicity of the payment is more than 2 months. The said issue was also considered in the meeting of the ESI Corporation held on 19.12.1968, and the Corporation agreed to the recommendations of the Standing Committee that the bonus may not be treated as wages. Hence, no contribution is payable on annual bonus. (Earlier instructions were issued via memo No. Ins. III/2(2)-2/67 dt. 8.2.1967).
As per ESI guidelines, it is mentioned that the bonus is not a part of wages, so no ESI deduction needs to be done on it.
From India, Gurgaon
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Please read...
ANNUAL BONUS:
Bonus paid to the employees could not be treated as wages for the purpose of charging of contribution under Sec. 2(22), provided the periodicity of the payment is more than 2 months. The said issue was also considered in the meeting of the ESI Corporation held on 19.12.1968, and the Corporation agreed to the recommendations of the Standing Committee that the bonus may not be treated as wages. Hence, no contribution is payable on annual bonus. (Earlier instructions were issued via memo No. Ins. III/2(2)-2/67 dt. 8.2.1967).
As per ESI guidelines, it is mentioned that the bonus is not a part of wages, so no ESI deduction needs to be done on it.
From India, Gurgaon
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Hello Friends,
I am pursuing an MBA (Correspondence), and currently facing a problem in HRM. Could you please provide me with some guidance about HRM and what is the easiest way to learn HRM?
Regards,
Monika Kaushal
From India, New Delhi
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I am pursuing an MBA (Correspondence), and currently facing a problem in HRM. Could you please provide me with some guidance about HRM and what is the easiest way to learn HRM?
Regards,
Monika Kaushal
From India, New Delhi
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Hello Boss2966 & Kalpanayadav,
Thank you both for your help. I have sent an email to my HR asking them to look into the matter. However, I would also like to ask, how can the process be reversed? Will ESIC be able to adjust the excess amount deducted? Approximately Rs 600 in excess has been deducted from my salary by including the annual bonus and conveyance in the contribution calculation.
Please suggest any other steps I need to take.
Thank you for your help again.
Shom
From India, Gurgaon
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Thank you both for your help. I have sent an email to my HR asking them to look into the matter. However, I would also like to ask, how can the process be reversed? Will ESIC be able to adjust the excess amount deducted? Approximately Rs 600 in excess has been deducted from my salary by including the annual bonus and conveyance in the contribution calculation.
Please suggest any other steps I need to take.
Thank you for your help again.
Shom
From India, Gurgaon
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Mr. Kalpana Yadav is right. As per the present policy of ESIC, annual bonus is not considered 'wages'. If the employer deducted contributions on annual bonus, that amount can be refunded to the employee. The amount deducted in January is to be remitted to ESIC by 21st February, so there is still time for payment. Even if it is remitted, since the contribution period ending on 31st March is not over, the employer can adjust the excess paid contribution during the currency of the contribution period, i.e., October to February, and only the balance can be paid for the month of March. Such adjustments are possible before the expiry of the current contribution period. Therefore, the employer can be requested to refund the amount immediately.
From India, Hyderabad
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From India, Hyderabad
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Dear Mr.Som, If execss amount is contributed by you or the employer then it may be adjusted before filing the halfyearly return. Regard’s Shaikh
From India, Bhubaneswar
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From India, Bhubaneswar
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Even Conveyance allowance cannot be taken into consideration as Wages for which the judgement copy is attached. (Downloaded from Cite HR). With warm regards S. Bhaskar 9099024667
From India, Kumbakonam
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From India, Kumbakonam
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Thank you all for your valuable inputs/replies. I have esclalated the case with my HR and they say that it will be adjusted over next contribution. Thank you again for your help. Regards, Shom
From India, Gurgaon
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From India, Gurgaon
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dear all i was just fresher in HR Execeutive i want to know how the FILE CHEKING in doing of employee of the company?? which oint to be noted while file checking???? plz hlp me out shiekh
From India, Nagpur
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From India, Nagpur
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As per my knowledge, Medical allowance is exempted from ESIC so if you are deducting the ESIC amount from salary then the calculation for deduction will be - ACTUAL GROSS - MEDICAL = ESIC GROSS
From India, Delhi
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From India, Delhi
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