Dear All,
I need clarity regarding Gross salary (Salary Component) calculation for ESIC deduction. If the incentive is not a regular income, then will ESIC be deducted on Gross (including Incentive) on a regular basis, or do we have to exempt the Incentive component for ESIC calculation? Are there any salary components that can be exempted from the salary calculation? I have come to know that washing allowance and uniform allowance are exempted from ESIC calculation.
Request you to provide your input regarding the same, and any document related to the same will be very helpful to me.
From India, Pune
Acknowledge(0)
Amend(0)
I need clarity regarding Gross salary (Salary Component) calculation for ESIC deduction. If the incentive is not a regular income, then will ESIC be deducted on Gross (including Incentive) on a regular basis, or do we have to exempt the Incentive component for ESIC calculation? Are there any salary components that can be exempted from the salary calculation? I have come to know that washing allowance and uniform allowance are exempted from ESIC calculation.
Request you to provide your input regarding the same, and any document related to the same will be very helpful to me.
From India, Pune
Acknowledge(0)Amend(0)
As per the decision of the Supreme Court delivered on 8.3.2000 in the case of M/s. Whirlpool India Ltd. vs. ESIC in civil appeal No. 1903 of 2000, additional remuneration to become wages has to be paid at intervals not exceeding two months as distinguished from being payable. Thus, there has to be actual payment, and the payment of production incentive does not fall under either the 1st part or the last part of the definition of the term wages as defined in Sec. 2(22) of the Act. Hence, no contribution is payable on the incentive bonus, provided the periodicity of payment is more than 2 months.
(Earlier instructions were issued by this office vide Memo No. T-11/13/53/19-84-Ins.IV dated 19.9.84, Memo No. Ins.III-2(2)/2/69 dated 26.12.73, Memo No. T-11/13/54/18/82-Ins.IV dated 14.7.82, and Memo No. D/Ins.5(5)/68 dated 18.9.88.)
From India, Mumbai
Acknowledge(0)Amend(0)
47(Earlier instructions were issued by this office vide Memo No. T-11/13/53/19-84-Ins.IV dated 19.9.84, Memo No. Ins.III-2(2)/2/69 dated 26.12.73, Memo No. T-11/13/54/18/82-Ins.IV dated 14.7.82, and Memo No. D/Ins.5(5)/68 dated 18.9.88.)
From India, Mumbai
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
SALARY SHEET CALCULATION.xls
Salary calculation.doc