Dear All,
Can anybody tell me if the gross salary is Rs. 6000.00 per month, and we are paying Rs. 500 extra as other earnings? So, is ESI applicable on other earnings or not? Also, let me know whether ESI is applicable on other earnings like arrears, bonus, leave encashment.
Regards,
Shalin Shah
From India, Ahmadabad
Can anybody tell me if the gross salary is Rs. 6000.00 per month, and we are paying Rs. 500 extra as other earnings? So, is ESI applicable on other earnings or not? Also, let me know whether ESI is applicable on other earnings like arrears, bonus, leave encashment.
Regards,
Shalin Shah
From India, Ahmadabad
Dear Shalin Shah,
Greetings!
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons, but it is now applicable to non-seasonal power-using factories employing 10 or more persons and non-power-using factories employing 20 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road motor transport undertakings, and newspaper establishments employing 20 or more persons.
The existing wage limit for coverage under the Act is Rs. 10,000/- per month (with effect from 1.10.2006).
From India, Madras
Greetings!
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons, but it is now applicable to non-seasonal power-using factories employing 10 or more persons and non-power-using factories employing 20 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road motor transport undertakings, and newspaper establishments employing 20 or more persons.
The existing wage limit for coverage under the Act is Rs. 10,000/- per month (with effect from 1.10.2006).
From India, Madras
dear any payment made on monthly basis will attract ESI,other earnings,bonus on monthly basis .leave encahment is not paid every month so ESI wii not be deducted. tks j s malik
From India, Delhi
From India, Delhi
Dear Mr. Shah,
The wage ceiling for coverage of employees (excluding remuneration for overtime work) is Rs. 10,000/- effective from 1st October 2006. Previously, it was Rs. 7,500/- per month effective from 1st April 2004 (Rule 50 of ESI (Central) Rules 1950).
Thanks,
Shreekanth.P.R
From India, Mumbai
The wage ceiling for coverage of employees (excluding remuneration for overtime work) is Rs. 10,000/- effective from 1st October 2006. Previously, it was Rs. 7,500/- per month effective from 1st April 2004 (Rule 50 of ESI (Central) Rules 1950).
Thanks,
Shreekanth.P.R
From India, Mumbai
ESI is applicable for any kind of earnings. ESI is not applicable on any one time payments, like statuoty bonus, leave encashment, reimbursement claims. etc. regards Amit
From India, New Delhi
From India, New Delhi
Dear Sir, I have also one query if we have given arrears by back date effect from two month so esic is deducted or not on arrears. Regards, Shalin Shah
From India, Ahmadabad
From India, Ahmadabad
yes esic is applicable on your earning also on arrear of wages but not applicable on bonus & leave encashment. sumit kumar saxena, 9899669071, 0120-4131277
From India, Ghaziabad
From India, Ghaziabad
Dear Shalin shah, All emoluments paid to the employee other than bonus,leave encashment are chargeable under ESI. You can refer the attachment which will guide you in this topic
From India, Madras
From India, Madras
Hi Shalin,
Under the provisions of the ESI Act, the definition of wages is very broad. Now, every payment made to a workman is treated as wages, and the contributions are payable by the employee and employer. According to Section 2(22), 'wages' means all remuneration paid or payable in cash to an employee if the terms of the contract of employment, expressed or implied, are fulfilled. This includes any payment to an employee in respect of any period of authorized leave, lockout, strike (which is not illegal), layoff, and other additional remuneration, if any, paid at intervals not exceeding two months. However, it does not include:
(a) any contribution paid by an employer to any pension fund or provident fund under this act,
(b) any traveling allowance or the value of any traveling concession,
(c) any sum paid to the person employed to defray expenses entailed on him by the nature of his employment, or
(d) any gratuity payable on discharge.
In short, any payment made to a worker on a regular basis shall be treated as wages, and contributions are payable. Payment of increment arrears will be treated as wages, and contributions are payable, whereas agreement arrears will not. Annual bonus is not considered wages under the ESI Act, whereas production/incentive bonus, which is paid every month, will be considered wages. Leave encashment during the period of service may be treated as wages, whereas leave encashment at the time of discharge or superannuation will not be treated as wages.
In your case, the additional payment of Rs 500/- will be treated as wages, and contributions will be payable. For more details or clarifications, you may contact me.
Hope this serves your purpose.
Thanks,
Avinash Kanoray
Email: akanoray@sify.com
Phone: 9890752690
From India, Pune
Under the provisions of the ESI Act, the definition of wages is very broad. Now, every payment made to a workman is treated as wages, and the contributions are payable by the employee and employer. According to Section 2(22), 'wages' means all remuneration paid or payable in cash to an employee if the terms of the contract of employment, expressed or implied, are fulfilled. This includes any payment to an employee in respect of any period of authorized leave, lockout, strike (which is not illegal), layoff, and other additional remuneration, if any, paid at intervals not exceeding two months. However, it does not include:
(a) any contribution paid by an employer to any pension fund or provident fund under this act,
(b) any traveling allowance or the value of any traveling concession,
(c) any sum paid to the person employed to defray expenses entailed on him by the nature of his employment, or
(d) any gratuity payable on discharge.
In short, any payment made to a worker on a regular basis shall be treated as wages, and contributions are payable. Payment of increment arrears will be treated as wages, and contributions are payable, whereas agreement arrears will not. Annual bonus is not considered wages under the ESI Act, whereas production/incentive bonus, which is paid every month, will be considered wages. Leave encashment during the period of service may be treated as wages, whereas leave encashment at the time of discharge or superannuation will not be treated as wages.
In your case, the additional payment of Rs 500/- will be treated as wages, and contributions will be payable. For more details or clarifications, you may contact me.
Hope this serves your purpose.
Thanks,
Avinash Kanoray
Email: akanoray@sify.com
Phone: 9890752690
From India, Pune
Dear Senior Members,
If ESI is not applicable to any one-time payments, why does it apply to one-time payments made to people such as electricians, plumbers, carpenters, coolies, or hamals? Kindly let us know ASAP. My email address is radhikaravi27@rediffmail.com.
Regards,
Radhika
From India, Mumbai
If ESI is not applicable to any one-time payments, why does it apply to one-time payments made to people such as electricians, plumbers, carpenters, coolies, or hamals? Kindly let us know ASAP. My email address is radhikaravi27@rediffmail.com.
Regards,
Radhika
From India, Mumbai
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