just want to know whether performance incentive is included in salary for calculating the ESI eligibility...?
From India
From India
I would like to invite the attention of the poster to the term "wages" u/s 2(22) of the ESI Act, 1948. A critical analysis of the definition would reveal that wages for the purpose of the Act would encompass:
(1) All remunerations paid or payable to an employee as per the terms of the contract
(2) Any payment of authorized leave salary
(3) Payment for the period of lock-out
(4) Payment for the period of strike which is not illegal
(5) Lay-off compensation
(6) Any additional remuneration paid at intervals not exceeding two months.
Performance incentives paid along with monthly salary should, therefore, be considered as additional remuneration, thereby attracting deductions towards ESI contributions.
From India, Salem
6185(1) All remunerations paid or payable to an employee as per the terms of the contract
(2) Any payment of authorized leave salary
(3) Payment for the period of lock-out
(4) Payment for the period of strike which is not illegal
(5) Lay-off compensation
(6) Any additional remuneration paid at intervals not exceeding two months.
Performance incentives paid along with monthly salary should, therefore, be considered as additional remuneration, thereby attracting deductions towards ESI contributions.
From India, Salem
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