ESIC applicability on the basis of breakup of salary slab

jishneo
My gross salary is Rs. 15500/- . It is divided in the following manner- 13k as my fixed salary and the rest 2k as my performance bonus.
The variable payment (performance bonus) ie 2k is paid to me on a quarterly basis.

Based on this, would I be liable to or exempted from ESIC ?

Any help regarding this will be really appreciated.
uma.vivek2000
Hi Jishneo
ESIC is calculated on the Gross Salary. Last Slab for ESIC facility is Rs15000/- Monthly Gross Salary.
Check with your accounts department whether they are mentioning your Gross Salary as 15500 or 13000 in your salary calculation and salary statement. if its 15500/- you will not com under ESIC Cover
jishneo
Hello vivek
Yes I can confirm my gross salary is 15500 k . so can i confirm that it has nothing to do with my variable salary that is payed to me quarterly?
saiconsult
Dear jishneo
Since your fixed pay is Rs.13000/-p.m and the remaining Rs.2000/- is being apid to you as performance bonus at the intervals of three months, that amount(Rs.2000/-) need sto be excluded and thus you are eligibel to be covered under ESI.
B.Saikumar
HR &Labour Law advisor
Mumbai
uma.vivek2000
Dear Jishneo

Variable pay does not effect the ESIC Rules, according new amendment realised in 10th May 2010 any person drawing Gross salary of rs. 15000/- and below with his or her dependents are eligible for ESIC.

Sai Kumar is Right in his stating. Performance Bonus is an additional incentive. Your Gross Salary should be considered as Rs. 13000/- and not Rs. 15500/- . Please be Very clear about your salary structure.

ESIC is not a LIABALITY for which you need an exemption. It is an Insurance and Medical Facility given to you and your dependents by the Government of India and the State Government at a very nominal salary deductions made from your salary. Please Check out the ESIC Website on internet

ESIC or Employees’ State Insurance Scheme of India, is a multidimensional social security system tailored to provide socio-economic protection to worker population and their dependants covered under the scheme. Besides full medical care for self and dependants, that is admissible from day one of insurable employment, the insured persons are also entitled to a variety of cash benefits in times of physical distress due to sickness, temporary or permanent disablement etc. resulting in loss of earning capacity, the confinement in respect of insured women, dependants of insured persons who die in industrial accidents or because of employment injury or occupational hazard are entitled to a monthly pension called the dependants benefit.
subbarao.v
Dear Jishneo
Apart from fixed salary you are paid performance bonus Rs.2000.If your performance bonus is paid regularly it can be considered as wage slab.Otherwise, it will not be considered as fixed salary.If it is paid once in
three months it will not applicable
With regards
v.subbarao
rahulbhatnet1
Dear HR Professionals,
I do not know the correspondence of Provident Fund. Could you please guide me what should I do from initial stage when an employee joins the organization & at the time of withdrawing PF.
I shall be highly thankful for your kind help...
Rahul
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