Hello, Will washing allowance & Over time get consider while checking ESIC deduction criteria? Regards, Anagha
From India, New Delhi
1From India, New Delhi
Dear Member,
Both Washing Allowance as well as Overtime Allowance form part of "wages" under ESI Act, 1948. However, while calculating wages exceeding to Rs.15000/- for exemption purposes, the amount of Overtime Allowance is to be ignored, but contribution on OT is continued to be paid.
From India, Noida
Both Washing Allowance as well as Overtime Allowance form part of "wages" under ESI Act, 1948. However, while calculating wages exceeding to Rs.15000/- for exemption purposes, the amount of Overtime Allowance is to be ignored, but contribution on OT is continued to be paid.
From India, Noida
Sir,
Thanks for the reply. But still i have some doubts. Considering overtime part suppose if some one having salary 15000/- Rs. & in april or in oct month (esic criteria checking period) he done overtime because of which he cross that ESIC limit of 15000/- Rs.
In this case should we not consider him for ESIC deduction ? If yes then what will be happen in next month if that emp. not go for OT & his earnings comes down below 15000/- Rs.(then he will be eligible for esic deduction as per rule.)?????
Considering above case do we really have to consider overtime while checking ESIC deduction criteria????
From India, New Delhi
Thanks for the reply. But still i have some doubts. Considering overtime part suppose if some one having salary 15000/- Rs. & in april or in oct month (esic criteria checking period) he done overtime because of which he cross that ESIC limit of 15000/- Rs.
In this case should we not consider him for ESIC deduction ? If yes then what will be happen in next month if that emp. not go for OT & his earnings comes down below 15000/- Rs.(then he will be eligible for esic deduction as per rule.)?????
Considering above case do we really have to consider overtime while checking ESIC deduction criteria????
From India, New Delhi
Sir,
If one employee is getting his wages exactly Rs.15000/ per month, he will be coverable under ESI Act, 1948 and contribution will be payable. If his wages exceeds Rs.15000/- i.e. say Rs. 15001/- per month then he will not be coverable in said Act. If his wages exceeds to Rs. 15000/- during any month except in base months of April & October then also he will be coverable and contribution payable upto close of respective contribution period.
So far as Overtime is concerned, if the employee is coverable as per example mentioned above, then contribution on OT will also be payable regardless whether by adding the said amount of OT his wages exceeds to Rs. 15000/-.during any month.
From India, Noida
If one employee is getting his wages exactly Rs.15000/ per month, he will be coverable under ESI Act, 1948 and contribution will be payable. If his wages exceeds Rs.15000/- i.e. say Rs. 15001/- per month then he will not be coverable in said Act. If his wages exceeds to Rs. 15000/- during any month except in base months of April & October then also he will be coverable and contribution payable upto close of respective contribution period.
So far as Overtime is concerned, if the employee is coverable as per example mentioned above, then contribution on OT will also be payable regardless whether by adding the said amount of OT his wages exceeds to Rs. 15000/-.during any month.
From India, Noida
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