I want to know if we are giving incentives to employees, and due to the incentive, the gross salary exceeds the ESIC slab of Rs. 21,000, will the employee still be eligible for ESIC? If yes, then what will be the calculation slab?
For example, if the gross salary of an employee is Rs. 20,000 and the incentive is Rs. 4,000, then the total gross will be Rs. 24,000. In this case, is the employee eligible for ESIC? If yes, will it be calculated on Rs. 24,000 or Rs. 21,000?
From India
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For example, if the gross salary of an employee is Rs. 20,000 and the incentive is Rs. 4,000, then the total gross will be Rs. 24,000. In this case, is the employee eligible for ESIC? If yes, will it be calculated on Rs. 24,000 or Rs. 21,000?
From India
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Hi,
I would suggest you go through the definition of wages and various other payments, including incentives, which are considered part of the wages under the ESI Act. Read this link for the definition: https://www.esic.nic.in/wages
As you are aware, the existing wage limit for coverage under the Act is Rs. 21,000/- per month (w.e.f. 01/01/2017), and in your case, the employee is drawing more than the wage limit for coverage, i.e., Rs. 21,000/- per month. Therefore, the employee will not be eligible for ESI coverage. For more details about the coverage, please access this link: https://www.esic.nic.in/coverage
I think, unlike EPF, there is no voluntary contribution option available with ESIC. However, for maintaining healthy industrial relations and a harmonious work environment, you may want to take an insurance policy for your employees that provides benefits similar to or better than ESI benefits.
I trust this helps you.
Regards,
I.S.
From India, Mumbai
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2I would suggest you go through the definition of wages and various other payments, including incentives, which are considered part of the wages under the ESI Act. Read this link for the definition: https://www.esic.nic.in/wages
As you are aware, the existing wage limit for coverage under the Act is Rs. 21,000/- per month (w.e.f. 01/01/2017), and in your case, the employee is drawing more than the wage limit for coverage, i.e., Rs. 21,000/- per month. Therefore, the employee will not be eligible for ESI coverage. For more details about the coverage, please access this link: https://www.esic.nic.in/coverage
I think, unlike EPF, there is no voluntary contribution option available with ESIC. However, for maintaining healthy industrial relations and a harmonious work environment, you may want to take an insurance policy for your employees that provides benefits similar to or better than ESI benefits.
I trust this helps you.
Regards,
I.S.
From India, Mumbai
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