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ESI & PF Applicability on Incentive

Vipul Acharya (Account Officer) (647 Points)

23 May 2020

Is ESI & PF Applicable on Incentive paid to labour contractor against labour hired for production work

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Asha Kanta Sharma (Manager - Finance & Accounts) (36355 Points)
Replied 23 May 2020

EPF is always calculated on Basic Pay Only.

When calculating ESI, the elements that comprise an employee’s gross salary include Basic Pay, Dearness Allowance, City Compensatory Allowance, House Rent Allowance, Attendance & Overtime Pays, Meal Allowance, Uniform Allowance, Incentives and other Special Allowances.