ESIC amount vary monthly depending on Incentive amount?

shabhi
Hello Everyone,
Need a better clarification on ESIC deduction, as ESIC is deducted in gross salary of 21000/- what if the company pays amount in incentive monthly.
Eg- "X" salary details for Nov'16 is Basic- 6500, HRA- 3000, Special All-425, Conveyance-1600,Other allowance- 5474, Incentive-9750 (which is not fixed vary on sales target achieved ).
Kindly advice the ESIC deduction???
And also please clarify is the ESIC amount vary monthly depending on Incentive amount.
Thanks
Nandita05
Dear Ms.Shweta,
Variable pay cannot be considered for ESI ded beco'z it is not determined as constant component of the earnings.
This variables may or may not be paid by employer at times , since that will effect your ESI contribution every month (EE & ER).
Consideration of Fixed earning components (which depends on present days) are to be considered for statutory deductions.
Hope above clarification would be helpful for you
Srinath Sai Ram
Incentive Paid on Monthly basis for ESI Covered Employees comes under the definition of Salary, warranting ESI Deduction.Variation in Gross Salary paid to an ESI Covered Employee consequent to payment of Incentive on Monthly basis is OK, But ESI Deduction to be made on Gross Salary including Incentive
hrfrost
if employee gross is Rs. 18000/- and monthly incentives. then what his esic deductions
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute