Hello, Can anybody tell me that should we have calculate ESIC on overtime. Can we remove this component (OT) from pay slip for ESIC calculation. Thanks & Regards, Monali
From India, Pune
1From India, Pune
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Hi Monali, If you want to avoid ESI for OT, you can pay the same separately or after salary. regards raja
From India, Madras
From India, Madras
Thanks for your reply! But if we pay the OT seperately or after salary by cash or by cheque, then isnt it affect in balance sheet at the end of the year. Thanks & Regards, Monali
From India, Pune
From India, Pune
max shield for ESI is 15,000, so yes, as long as the gross salary is less than 15000 you should calculate the ESI for OT.
From India, Hyderabad
From India, Hyderabad
Thank you, Ramnaresh!
But my question is different. Is it compulsory to pay the ESIC on OT? Because if we calculate OT on the payslip, then the employer has to pay a significant amount for ESIC contribution. Please provide an alternative way for this if possible.
Thanks & Regards,
Monali
From India, Pune
But my question is different. Is it compulsory to pay the ESIC on OT? Because if we calculate OT on the payslip, then the employer has to pay a significant amount for ESIC contribution. Please provide an alternative way for this if possible.
Thanks & Regards,
Monali
From India, Pune
Yes, it is compulsory to pay ESI on overtime. According to the Employees' State Insurance Act, 1948, it is mandatory to pay ESI if the gross salary is below Rs. 15,000. If you show overtime on the wage slip and the gross salary is below Rs. 15,000, you have to pay ESI on the overtime.
For example, if your basic salary is Rs. 10,000, HRA is Rs. 2,000, and your overtime is 20 hours, then you have to pay Rs. 239 as ESI. The condition is that it should be shown in the overtime register.
From India, Delhi
For example, if your basic salary is Rs. 10,000, HRA is Rs. 2,000, and your overtime is 20 hours, then you have to pay Rs. 239 as ESI. The condition is that it should be shown in the overtime register.
From India, Delhi
Dear Ms. Monali,
It is compulsory to deduct ESIC on OT. You may avoid ESIC deduction on OT by paying the OT amount separately by voucher. However, if it is deducted during an ESIC Inspection, you would not only have to pay the amount but also a penalty and interest, which could be a substantial amount. It is not only a monetary loss but also a black mark on the reputation of the organization.
It is advisable to pay all the statutory payments to avoid future complications.
Regards,
Ganesh S Iyer
"Truth Always Prevails."
From India, Mumbai
It is compulsory to deduct ESIC on OT. You may avoid ESIC deduction on OT by paying the OT amount separately by voucher. However, if it is deducted during an ESIC Inspection, you would not only have to pay the amount but also a penalty and interest, which could be a substantial amount. It is not only a monetary loss but also a black mark on the reputation of the organization.
It is advisable to pay all the statutory payments to avoid future complications.
Regards,
Ganesh S Iyer
"Truth Always Prevails."
From India, Mumbai
As per my understanding:
1. If gross (including OT) remains within 15000/-, ESI will be deducted.
2. If gross (including OT) exceeds 15000/-, ESI will not be deducted.
Kindly rectify my understanding, whether it is right or wrong.
From India, Pondicherry
1. If gross (including OT) remains within 15000/-, ESI will be deducted.
2. If gross (including OT) exceeds 15000/-, ESI will not be deducted.
Kindly rectify my understanding, whether it is right or wrong.
From India, Pondicherry
ESI will not be deducted for those who are getting pay less than 15k. ESI will be calculated based on your monthly fixed pay, with nothing to do with overtime payments. Overtime payments fall under the incentive category.
From India, Bangalore
From India, Bangalore
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