Dear seniors,
we are providing incentive to our employee, however the said incentive is being paid monthly basis plz let me know
weather incentive would be add in basic salary for esi deduction,
example.... basic salary.. 9000
incentive 2000
pls clarify weather to deduct esi on 9000 or 11000 as gross salary,
From India, Jodhpur
4we are providing incentive to our employee, however the said incentive is being paid monthly basis plz let me know
weather incentive would be add in basic salary for esi deduction,
example.... basic salary.. 9000
incentive 2000
pls clarify weather to deduct esi on 9000 or 11000 as gross salary,
From India, Jodhpur
Hi Kumar,
Which type of you incentive provide your employee for ESI below paragraph help you. As per my concern if you add incentive in basic you have to pay PF contribution in incentive.
Thanks
Man ish
INCENTIVE BONUS:
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.)
PRODUCTION BONUS:
Production Bonus like incentive bonus is paid to the workers as additional remuneration and hence like incentive bonus such additional remuneration in order to become wages has to be paid at intervals not exceeding 2 months as distinguished from being payable. Thus, there has to be actual payment and hence no contribution is payable, provided periodicity of the payment is more than 2 months.
(Earlier instructions issued vide letter dated 4(2)/13/74-Ins.IV dated 2.9.85)
Thanks
Manish
From India, Bangalore
Which type of you incentive provide your employee for ESI below paragraph help you. As per my concern if you add incentive in basic you have to pay PF contribution in incentive.
Thanks
Man ish
INCENTIVE BONUS:
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.)
PRODUCTION BONUS:
Production Bonus like incentive bonus is paid to the workers as additional remuneration and hence like incentive bonus such additional remuneration in order to become wages has to be paid at intervals not exceeding 2 months as distinguished from being payable. Thus, there has to be actual payment and hence no contribution is payable, provided periodicity of the payment is more than 2 months.
(Earlier instructions issued vide letter dated 4(2)/13/74-Ins.IV dated 2.9.85)
Thanks
Manish
From India, Bangalore
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