Hello friends,
I need your guidance on whether we need to deduct PF & ESIC on the incentive. We are paying incentives for April, May & June in the month of July 10. Do we need to deduct PF/ESIC from it?
Regards,
Madhura
From India
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12I need your guidance on whether we need to deduct PF & ESIC on the incentive. We are paying incentives for April, May & June in the month of July 10. Do we need to deduct PF/ESIC from it?
Regards,
Madhura
From India
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dear if you are paying incentice every month than you are required to pay ESI not PF but if you are paying on quarterly basis and not show as it is monthly than you are not reqd to pay ESi and PF
From India, Delhi
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From India, Delhi
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Dear Madhura,
Malik Sir is absolutely right. If you are paying the incentive monthly as an allowance, you need to pay ESI only, not PF. But if you are paying it at intervals exceeding two months, you are not required to deduct ESI/PF.
Regards,
Sanjay Gupta
From India, Delhi
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Malik Sir is absolutely right. If you are paying the incentive monthly as an allowance, you need to pay ESI only, not PF. But if you are paying it at intervals exceeding two months, you are not required to deduct ESI/PF.
Regards,
Sanjay Gupta
From India, Delhi
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Malik sir's advice is correct. If you are paying incentives monthly, then you need to pay ESI, not PF. However, you can pay it quarterly to avoid the deduction of ESIC. This incentive must genuinely be an incentive, and you have to prove it to the government when they inquire about the practices and procedures. In my company, we were paying incentives without a policy and procedure, and the PF officer threatened to file a case against us. Subsequently, we created a policy and procedure for the same and included it in our union agreement.
From India, Mumbai
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From India, Mumbai
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Hi If you are paying incentive or Ex-gratia every month then you have to pay ESI only not PF if you are paying incentive or Ex-gratia quarterly, half yearly or yearly no need to pay ESI. Amit SEI
From India, Gurgaon
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From India, Gurgaon
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Dear All, I also agree if Incentive is paid monthly then PF & ESIC to be deducted ..... if it is paid in name of Variable and amount varies some time then PF & ESIC is applicable or not.
From India, New Delhi
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From India, New Delhi
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PF is calculated on Basic salary + DA. So incentive will not be deducted from it.
ESI is calculated on gross.
Incentive is a part of the gross salary if paid on a monthly basis and will attract ESI. Otherwise, not.
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ESI is calculated on gross.
Incentive is a part of the gross salary if paid on a monthly basis and will attract ESI. Otherwise, not.
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Dear Malik ji,
Can one pay a lump sum amount as an incentive instead of making OT payments to avoid contributing PF contributions? Because at times PF authorities object to making OT payments, stating it as an evasion of wages.
Regards,
H Singh
From India, Raurkela
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Can one pay a lump sum amount as an incentive instead of making OT payments to avoid contributing PF contributions? Because at times PF authorities object to making OT payments, stating it as an evasion of wages.
Regards,
H Singh
From India, Raurkela
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Dear Friend, I agree with you point bt what is my doubt perhap one person’s gross 15500 k for the month of april bt next month he is getting 14500 means how can we mention in esi online.
From India
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From India
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If a salesman is receiving a basic salary of 9600 per month, DA of 6820 per month, HRA of 6568 per month, incentives of 5200, and reimbursement of conveyance of 10511 per month, should we deduct TDS from his salary? Annually, he is receiving:
- Basic = 115200
- DA = 81840
- HRA = 78816
- Incentives = 62400
- Reimbursement of conveyance = 126132
Kindly help me, please.
From India, Chandigarh
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- Basic = 115200
- DA = 81840
- HRA = 78816
- Incentives = 62400
- Reimbursement of conveyance = 126132
Kindly help me, please.
From India, Chandigarh
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