Dear Users Good Morning, Please guide me esi contribution deducted on arreas or not. Thanks
From India, Chandigarh
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140From India, Chandigarh
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Dear Mr. Vikash, As per rule we can not deduct ESIC from salary. Please find attached Employer guide.. Thank you. Regards, J.N.Modi
From India, New Delhi
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From India, New Delhi
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Dear Mr. Modi, I am delighted to see your interpretation of the handbook. Please take out some time to correct my impression on this topic, which is as follows:
ESI Contribution on Payments
Any payment, including wages or any other income arising out of employment in a factory or establishment, attracts ESI contribution except in cases where the frequency of payment is more than two and a half months. The definition of wages includes arrears of wages resulting from wage revision. This is the reason some organizations give ad-hoc payment in lieu of arrears. Furthermore, bonus under the act and gratuity payable on separation are exempt.
Please spare some time and help us with your views.
Thanks & Regards,
Generalist091
From United Kingdom, London
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ESI Contribution on Payments
Any payment, including wages or any other income arising out of employment in a factory or establishment, attracts ESI contribution except in cases where the frequency of payment is more than two and a half months. The definition of wages includes arrears of wages resulting from wage revision. This is the reason some organizations give ad-hoc payment in lieu of arrears. Furthermore, bonus under the act and gratuity payable on separation are exempt.
Please spare some time and help us with your views.
Thanks & Regards,
Generalist091
From United Kingdom, London
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NO ESI ON ARREARS ( ESI EMPLOYER GUIDE )[1].pdf