Dear Seniors,
We have covered our employee under ESI act, I have a doubt about the contribution part that some of our drivers fixed salary is below Rs.15000.00 but if I include their incentives, constantly they will cross above Rs.15000. I have calculated as below
Wages Incentive Total Wages Employee contribution Employer contribution
1.75% 4.75%
12000 7800 19800 347 941
Kindly guide me the above calculation is right?
if possible please send the act that can we include the incentive part and the same has to take for the contribution
Thank you in advance
Regards
Sintralla
From India, Madras
3We have covered our employee under ESI act, I have a doubt about the contribution part that some of our drivers fixed salary is below Rs.15000.00 but if I include their incentives, constantly they will cross above Rs.15000. I have calculated as below
Wages Incentive Total Wages Employee contribution Employer contribution
1.75% 4.75%
12000 7800 19800 347 941
Kindly guide me the above calculation is right?
if possible please send the act that can we include the incentive part and the same has to take for the contribution
Thank you in advance
Regards
Sintralla
From India, Madras
Wages Incentive Total Wages Employee contribution Employer contribution 1.75% 4.75% 12000 7800 19800 347 941 The table is bit confusion so sending again
From India, Madras
From India, Madras
If you pay incentive on every month and if the wages excedd Rs 15000/ including incntive, then the workman will not be covered under ESI. T Sivasankaran
From India, Chennai
From India, Chennai
It depends on few things, Incentive is fixed or variable. Paid monthly or Quartely or half yearly. on what basis this incentive is paid
From India, Delhi
From India, Delhi
Dear Mr.Rajeev, Incentive is varibale paid by monthly Incentive paid based on the kilometer runnin
From India, Madras
From India, Madras
Than in my opinion this incentive will not be included in the computation for the purpose of eligibility of the employee under the ESI Act, but ESI will be deducted on that amount, just like Overtime.
Rest I will again confirm it.
From India, Delhi
Rest I will again confirm it.
From India, Delhi
yes,
Case I
If his total salary is 14000.00 and Incentive is 2000.00(Variable), than for the purpose of his coverage in the ESI Act, his salary (excluding incentive) will be considered, but ESI will be deducted on Salary + Incentive. One more thing is there that as ESI online deduction has started, so the system automatically takes the figure of 15 K for the ESI deductions or contribution.
Means he will be covered but ESI will be deducted on 15000.00 only, as the incentive is variable, so in case if the total salary including incentive is less than 15000.00 than ESI will be deducted on full, but is it is more than 15 K, than ESI will be deducted on 15K.
Case II
If his total salary is 15500.00 and Incentive is 2000.00(Variable), than He will be exempted from the ESI .
From India, Delhi
Case I
If his total salary is 14000.00 and Incentive is 2000.00(Variable), than for the purpose of his coverage in the ESI Act, his salary (excluding incentive) will be considered, but ESI will be deducted on Salary + Incentive. One more thing is there that as ESI online deduction has started, so the system automatically takes the figure of 15 K for the ESI deductions or contribution.
Means he will be covered but ESI will be deducted on 15000.00 only, as the incentive is variable, so in case if the total salary including incentive is less than 15000.00 than ESI will be deducted on full, but is it is more than 15 K, than ESI will be deducted on 15K.
Case II
If his total salary is 15500.00 and Incentive is 2000.00(Variable), than He will be exempted from the ESI .
From India, Delhi
Every employee is covered under if salary is less then 15k, incentive doesn’t matter. ESI contribution will be deducted both salary +incentice
From India, Delhi
From India, Delhi
Dear Sintrallaa,
If the total salary is Rs.15000.00 per month excluding incentive so esi is applicable both of amount.
In your case Salary is Rs.12000.00 + Incentive Rs.7800.00 Total Amount is Rs.19800.00 then ESI is applicable on total amount.
Regards
Amar Pundir
From India, Delhi
If the total salary is Rs.15000.00 per month excluding incentive so esi is applicable both of amount.
In your case Salary is Rs.12000.00 + Incentive Rs.7800.00 Total Amount is Rs.19800.00 then ESI is applicable on total amount.
Regards
Amar Pundir
From India, Delhi
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ESI contribution rates lowering.pdf