I just learned about a provision under ESIC that states any payment made with a two-month gap, such as incentives (not on a monthly basis), does not fall under ESIC coverage. My queries are:
1. Is this information correct?
2. In which section of the ESIC Act is this provision mentioned?
3. Are there any relevant case laws?
Sudarshan
From India, New Delhi
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1. Is this information correct?
2. In which section of the ESIC Act is this provision mentioned?
3. Are there any relevant case laws?
Sudarshan
From India, New Delhi
Acknowledge(0)Amend(0)
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 first part or the 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 via Memo No. T-11/13/53/19-84-Ins.IV dated 19.9.84, Memo No. Ins.III-2(2)/2/69 dated 26.12.73, Memo No. T-11/13/54/18/82-Ins.IV dated 14.7.82, and Memo No. D/Ins.5(5)/68 dated 18.9.88.)
From India, Mumbai
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47(Earlier instructions were issued by this office via Memo No. T-11/13/53/19-84-Ins.IV dated 19.9.84, Memo No. Ins.III-2(2)/2/69 dated 26.12.73, Memo No. T-11/13/54/18/82-Ins.IV dated 14.7.82, and Memo No. D/Ins.5(5)/68 dated 18.9.88.)
From India, Mumbai
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