Hi Bhavna,
Yes, you need to take the incentives into account because, according to me, ESI is always calculated based on the total earnings. You need to deduct ESI until the completion of the ongoing 6-month period.
Members, please correct me if I am wrong.
Regards,
Amith R.
From India, Bangalore
17Yes, you need to take the incentives into account because, according to me, ESI is always calculated based on the total earnings. You need to deduct ESI until the completion of the ongoing 6-month period.
Members, please correct me if I am wrong.
Regards,
Amith R.
From India, Bangalore
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Hi All,
I have a few queries related to ESIC calculation. I am citing a case to explain the situation and understand the solutions well. An employee is at a gross salary of ₹8000 and is thus liable for ESIC deduction. During the year, he receives an incentive worth Rs. 1,500 and after a few months, an increment of Rs. 4,000. Now his gross salary becomes Rs. 12,000.
Following are the queries:
1. While calculating ESIC deduction, will incentives be considered?
2. After the increment, though he is not eligible for ESIC deduction, but as the 6-monthly contribution has to go on, the deduction will be calculated on which amount... ₹8,000, ₹10,000, or ₹12,000?
Please help.
Regards,
Bhavna
From India, Delhi
I have a few queries related to ESIC calculation. I am citing a case to explain the situation and understand the solutions well. An employee is at a gross salary of ₹8000 and is thus liable for ESIC deduction. During the year, he receives an incentive worth Rs. 1,500 and after a few months, an increment of Rs. 4,000. Now his gross salary becomes Rs. 12,000.
Following are the queries:
1. While calculating ESIC deduction, will incentives be considered?
2. After the increment, though he is not eligible for ESIC deduction, but as the 6-monthly contribution has to go on, the deduction will be calculated on which amount... ₹8,000, ₹10,000, or ₹12,000?
Please help.
Regards,
Bhavna
From India, Delhi
Hi,
The employer and employee should contribute towards ESIC at Rs. 12,000. For more information on ESIC and what constitutes wages, please read the attached file.
Warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
The employer and employee should contribute towards ESIC at Rs. 12,000. For more information on ESIC and what constitutes wages, please read the attached file.
Warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
Hi Bhavana,
The incentive amount has to be included in the gross earnings for ESI calculations. Even though the gross income crosses the ceiling of Rs. 10,000, the ESI should be deducted until the end of the contribution period for the gross earnings.
Members, please tell me if I am wrong.
Warm regards,
Satyakumar
From India, Coimbatore
The incentive amount has to be included in the gross earnings for ESI calculations. Even though the gross income crosses the ceiling of Rs. 10,000, the ESI should be deducted until the end of the contribution period for the gross earnings.
Members, please tell me if I am wrong.
Warm regards,
Satyakumar
From India, Coimbatore
Hi,
The simple answer to your query is that the amount on which he was receiving the contribution should be the only amount considered. If you consider the entire amount, it may appear that you are not adhering to the law. Therefore, only the previous amount on which he was receiving the contribution should be taken into account.
I apologize if I am mistaken, but I believe I am right to the best of my knowledge.
Amar Chauhan
The simple answer to your query is that the amount on which he was receiving the contribution should be the only amount considered. If you consider the entire amount, it may appear that you are not adhering to the law. Therefore, only the previous amount on which he was receiving the contribution should be taken into account.
I apologize if I am mistaken, but I believe I am right to the best of my knowledge.
Amar Chauhan
Hi Bhavna,
Even after the increment, you need to calculate ESI on the total earnings only. It doesn't change, and as I mentioned in my earlier post, you need to do it until the completion of the ongoing 6-month period. I hope it is clear now.
Umesh, thanks a lot for the very informative content. Keep posting.
Regards,
Amith R.
From India, Bangalore
Even after the increment, you need to calculate ESI on the total earnings only. It doesn't change, and as I mentioned in my earlier post, you need to do it until the completion of the ongoing 6-month period. I hope it is clear now.
Umesh, thanks a lot for the very informative content. Keep posting.
Regards,
Amith R.
From India, Bangalore
Hi my salary hikes 16000 in July 2016.... now esic wage limit increases to 21000.... am i eligibility for esic maternity benefit in Dec 2016....
From India, Jaggayyapeta
From India, Jaggayyapeta
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ESIC Calculation.zip
ESIC Benefits.pdf
Esic Benefits.docx