Dear All Seniors, Greetings of the day Pls. confirm to me . In production incentive ESIC is Applicable ???
From India, Chandigarh
From India, Chandigarh
Any component coming continuously for more than 2 months in the salary will invite ESI contribution. regards, Kamal
From India, Pune
173From India, Pune
Dear Sewal,
Any cash benefits given to the employees apart from his gross salary for a continuous period of 2 months then it will be calculated for ESI.
Eg. Like overtime, monthly incentive, monthly bonus will be calculated for ESI.
Annual Bonus, Quarterly incentive will not be taken for ESI calculation.
As per the decision of the Supreme Court delivered on 8.3.2000 in the case of M/s.Whirlpool India Ltd. Vs. ESIC in civil appeal No.1903 of 2000, additional remuneration to become wages has to be paid at intervals not exceeding two months as distinguished from being payable. Thus, there has to be actual payment and the payment of production incentive does not fall either under the 1st part or last part of the definition of the term wages as defined in Sec.2(22) of the Act, hence no contribution is payable on the incentive bonus, provided the periodicity of payment is more than 2 months.
(Earlier instructions were issued by this office vide Memo No.T-11/13/53/19-84-Ins.IV dt. 19.9.84, Memo No.Ins.III-2(2)/2/69 dt,. 26.12.73, Memo No.T-11/13/54/18/82-Ins.IV dt. 14.7.82 & Memo No.D/Ins.5(5)/68 dt. 18.9.88.)
From India, Mumbai
Any cash benefits given to the employees apart from his gross salary for a continuous period of 2 months then it will be calculated for ESI.
Eg. Like overtime, monthly incentive, monthly bonus will be calculated for ESI.
Annual Bonus, Quarterly incentive will not be taken for ESI calculation.
As per the decision of the Supreme Court delivered on 8.3.2000 in the case of M/s.Whirlpool India Ltd. Vs. ESIC in civil appeal No.1903 of 2000, additional remuneration to become wages has to be paid at intervals not exceeding two months as distinguished from being payable. Thus, there has to be actual payment and the payment of production incentive does not fall either under the 1st part or last part of the definition of the term wages as defined in Sec.2(22) of the Act, hence no contribution is payable on the incentive bonus, provided the periodicity of payment is more than 2 months.
(Earlier instructions were issued by this office vide Memo No.T-11/13/53/19-84-Ins.IV dt. 19.9.84, Memo No.Ins.III-2(2)/2/69 dt,. 26.12.73, Memo No.T-11/13/54/18/82-Ins.IV dt. 14.7.82 & Memo No.D/Ins.5(5)/68 dt. 18.9.88.)
From India, Mumbai
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