Dear Mr. Prasad,
The views given by Mr. Korgaonkar are correct as per provisions. However, for the correct legal wordings/terms, you may visit the website of ESIC where the ESI Act in detail can be read for all purposes.
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
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78The views given by Mr. Korgaonkar are correct as per provisions. However, for the correct legal wordings/terms, you may visit the website of ESIC where the ESI Act in detail can be read for all purposes.
Chandok AK
RPFC (Retd.)
<link no longer exists - removed>
From India, Chandigarh
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Dear HR,
I am a new learner and have a confusion. Please suggest to me.
If we hire a candidate (XYZ) at a CTC of Rs. 10 Lac annually, with Rs. 6.88 Lac as Fixed Salary per year, Rs. 96,000 annually for Car Lease, and Rs. 2.16 Lac annually as Reimbursement (for Fuel expenses, Car maintenance, and Driver Salary).
If the company leases a car from a third party at a rent of Rs. 8,000 per month (Annual - Rs. 96,000) and provides it to the employee (XYZ), along with Rs. 7,500 for Driver salary and Rs. 10,500 for Fuel Expenses and Car Maintenance Expenses.
Now, if we provide a reimbursement of Rs. 7,500 as Driver Salary to the employee (XYZ), who will be responsible for depositing ESI contribution for the Driver? Is it our Company? The employee (XYZ)? Or is there no need to pay ESI Contribution by anybody?
In case you require further clarification on this, please let us know.
Thanks & Regards,
Diwakar Jha
9582400117
From India, Delhi
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I am a new learner and have a confusion. Please suggest to me.
If we hire a candidate (XYZ) at a CTC of Rs. 10 Lac annually, with Rs. 6.88 Lac as Fixed Salary per year, Rs. 96,000 annually for Car Lease, and Rs. 2.16 Lac annually as Reimbursement (for Fuel expenses, Car maintenance, and Driver Salary).
If the company leases a car from a third party at a rent of Rs. 8,000 per month (Annual - Rs. 96,000) and provides it to the employee (XYZ), along with Rs. 7,500 for Driver salary and Rs. 10,500 for Fuel Expenses and Car Maintenance Expenses.
Now, if we provide a reimbursement of Rs. 7,500 as Driver Salary to the employee (XYZ), who will be responsible for depositing ESI contribution for the Driver? Is it our Company? The employee (XYZ)? Or is there no need to pay ESI Contribution by anybody?
In case you require further clarification on this, please let us know.
Thanks & Regards,
Diwakar Jha
9582400117
From India, Delhi
Acknowledge(0)Amend(0)
1. Sir, please see the definition of the term "wages" as defined in the ESI Act, 1948. Accordingly, the employer is required to deduct the amount of contribution from the wages of employees.
2. The so-called CTC has no relevance as far as compliance under the above-said Act is concerned.
From India, Noida
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2. The so-called CTC has no relevance as far as compliance under the above-said Act is concerned.
From India, Noida
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