ESI applicability on Quarterly Payment of incentive bonus.
Query1: - The employer is started a production-linked incentive scheme. where employees can get per pcs incentive after pcs made above target.
Employer said, He would pay employees incentive bonuses on quarterly basis. Does it attract ESI .....
Query2 : Employees belongs to the low financial background, and they need part payment before 3rd month completion... like employee union demanded that its ok to calculate total incentive amount on quarterly basis, but employees need advance payment for that. 1st quarter April, May, June total incentive was of a employee was 8000. but he demanded advance in Mid of June, because they need money, he asked that he need money from my incentive. so employer given 5000 as advance and balance 3000 employer paid after june completed, means 1st week of july.
now all employees demanding advance payment....... does these payment attract ESI, becuase payement is being done after every 2-3 months.
From India, Rajkot
10Query1: - The employer is started a production-linked incentive scheme. where employees can get per pcs incentive after pcs made above target.
Employer said, He would pay employees incentive bonuses on quarterly basis. Does it attract ESI .....
Query2 : Employees belongs to the low financial background, and they need part payment before 3rd month completion... like employee union demanded that its ok to calculate total incentive amount on quarterly basis, but employees need advance payment for that. 1st quarter April, May, June total incentive was of a employee was 8000. but he demanded advance in Mid of June, because they need money, he asked that he need money from my incentive. so employer given 5000 as advance and balance 3000 employer paid after june completed, means 1st week of july.
now all employees demanding advance payment....... does these payment attract ESI, becuase payement is being done after every 2-3 months.
From India, Rajkot
Final query is that is ESI applicable on Part payment on Incentive bonus. and part payment is happening every 2 month, and incentive bonus is due on after 3rd month.
From India, Rajkot
From India, Rajkot
Hi,
If incentives are paid on monthly basis then ESI to calculated for the incentives as well.
However if the incentives are paid quarterly/half yearly / annually then it will not come under purview of ESI.
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.
From India, Madras
If incentives are paid on monthly basis then ESI to calculated for the incentives as well.
However if the incentives are paid quarterly/half yearly / annually then it will not come under purview of ESI.
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.
From India, Madras
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