I am now deducted for ESIC; however, my salary is 21500. When questioned, they say statutory bonus is excluded from the gross salary, hence it comes to 20500, which is as per government order. Is this the right practice to show the statutory bonus in gross and later exclude the statutory bonus for ESIC?
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From India, Mumbai
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From India, Mumbai
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bonus is paid monthly or not, that is basic point to discuss, if paid monthly then it is part of salary, if calculated monthly but paid yearly, then excluded.
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In my Opinion Rs. 21000 for ESI Deduction , i think Rs. 21000 is the maximum limit and its for Basic wages only on which PF & ESI is Accounted
From India, Jamshedpur
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From India, Jamshedpur
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Any one tell me that what is the contribution rate for employer side in ESIC after increase the limit for ESIC.
From India, Gurgaon
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From India, Gurgaon
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contribution rate ESIC on GROSS Wages employee 1.75% ( 1% in newly notified areas) employer 4.75% ( 3% in newly notified areas) total — 6.5% (4% in newly notified areas)
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Dear Prasad,
Any payment made at intervals not exceeding two months shall attract ESI. Therefore, monthly payment of bonus shall be admissible for ESI. However, while monthly payment of bonus is a violation of the Payment of Bonus Act, 1965, Section 19(B) of the said act can be read as follows: in any other cases within the period of eight months from the close of the accounting year.
Thanks & Regards,
V SHAKYA
HR & Labour, Corporate Laws Advisor
From India, Agra
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Any payment made at intervals not exceeding two months shall attract ESI. Therefore, monthly payment of bonus shall be admissible for ESI. However, while monthly payment of bonus is a violation of the Payment of Bonus Act, 1965, Section 19(B) of the said act can be read as follows: in any other cases within the period of eight months from the close of the accounting year.
Thanks & Regards,
V SHAKYA
HR & Labour, Corporate Laws Advisor
From India, Agra
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Gross Salary(1).xls